Bitcoin plunges to a 2018 low with $55 billion wiped out as concerns mount

Bitcoin has slumped to its low for the year after seeing more than $US44 billion ($55 billion) in market value lost during January amid mounting concerns of increased regulation and the viability of the cryptocurrency.

After reaching a record high of $US19,511 on December 18, Bitcoin has lost more half its value as the digital token has been weighed down by expectations of more government oversight globally, fears of price manipulation, the susceptibility of exchanges to hacking and lingering concern that it’s all just an asset bubble.

Facebook announced a ban on cryptocurrency ads this week.

Bitcoin declined as much as 12 per cent on Thursday to $US8796, the lowest since November, in part on concern India may crack down on cryptocurrencies. That follows a spate of recent negative headlines, including a $US500 million heist from a Japanese cryptocurrency exchange.

“News about India potentially cracking down on cryptocurrencies added to an already bad week in terms of headlines,” said Andrew Se, cryptocurrency trader and co-founder of research website Cryptoprofile.com.

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Source: Bitcoin plunges to a 2018 low with $55 billion wiped out as concerns mount | afr.com