Bitcoin dropped to $6,583, lowest level since mid-November

Bitcoin briefly dipped below $7,000 on Monday to its lowest since mid-November.

Bitcoin, a cryptocurrency, is the world’s first totally decentralized digital payment system. It functions without a central bank or administrator.

According to CoinDesk, the cryptocurrency fell by 19.58 percent on Monday to as low as $6,583.56.

Bitcoin price chart for Feb 5
Bitcoin price chart for Feb 5 2018. Source: Coindesk

Bitcoin recovered slightly and is currently trading at around the $6,900 level but it is still down by 50 percent compared to the beginning of the year.

The latest selloff, pushing the price down, is being driven by growing concerns of increased government regulation and potential price manipulation in the market.

China just announced that it is banning foreign cryptocurrency exchange platforms from domestic investors.

And on Friday, three major US banks (J.P. Morgan Chase, Bank of America and Citigroup) announced their decision to bar cryptocurrency purchases made with credit card.

UK bank Lloyds and Virgin Money also made the decision to implement a ban on customers using credit cards to buy Bitcoin.

SEC and CFTC chairs to bring up cryptocurrency trading with Congress

Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), and Jay Clayton, chairman of the Securities and Exchange Commission (SEC), will provide testimony to the Senate Banking Committee growing concern of the risks cryptocurrencies pose to the financial system and to investors.

According to Coindesk, SEC chairman Clayton said that he is “open” to working with US lawmakers and state regulators regarding any potential new rules for trading sites.

He remarked: “As Chairman Giancarlo and I stated recently, we are open to exploring with Congress, as well as with our federal and state colleagues, whether increased federal regulation of cryptocurrency trading platforms is necessary or appropriate. We also are supportive of regulatory and policy efforts to bring clarity and fairness to this space.”

Video – Cryptocurrencies

Have you ever wondered what cryptocurrencies are and how they function? This Market Business News explain using simple terms.