Published: Tue, February 06, 2018
Finance | By Cynthia Curry

Bitcoin continues its downhill slide, dropping below $7K

Bitcoin continues its downhill slide, dropping below $7K

Last week was Bitcoin's worst in nearly five years, seeing its value fell below $8,200, but now things have gone from bad to downright terrible for the cryptocurrency.

"Cryptocurrencies have seriously fallen out of favor since the middle of December and constant negative news flow and speculation of increased regulation has exacerbated the move lower, much in the same way that the constant flow of positive news stories aided the explosion higher", said Craig Erlam, an analyst at currency broker Oanda.

As the price of Bitcoin is based on speculations and these cryptos will see a drop in price in a similar manner they started their epic bull run a year ago.

Bitcoin briefly fell below $6,000 at around 8.00 a.m. GMT (3.00 a.m. ET) for the first time since mid-November. The total market cap for the digital currencies has fallen by $245.7 billion, or almost 43 percent in 2018 so far.

According to CoinMarketCap.com, XRP is now having a market capitalization of only $27.3 billion.

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The authenticity of the video could not be independently confirmed but it corresponded to events reported by the AP. One soldier was also killed on the Turkish side of the border.

Of course, the cryptocurrency is still flying high relative to its value of $1,052 this time past year, but since hitting an all-time high value of $19,343 on 16 December, it's been on a rapid decline.

Ethereum, litecoin, bitcoin cash, and ripple also posted double-digit percentage losses early on Tuesday morning.

The crash in cryptocurrency market is mainly because China bans foreign exchanges platform on trading cryptocurrency. CoinDesk's bitcoin price index tracks prices from digital currency exchanges Bitstamp, Coinbase, itBit and Bitfinex. The fear of new regulations in Asian markets such as China is a contributing factor.

To make things worse for an already volatile market, India's finance minister Arun Jaitley, also said that the country's government "does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto assets in financing illegitimate activities or as part of the payment system".

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