Bitcoin Plummets to Near Four Week Low

Bitcoin slumped by the most since September, giving new impetus to a January selloff in cryptocurrencies that coincides with rising scrutiny from regulators in many countries.The largest digital coin fell 12 percent to $12,255 at 9 a.m. in London, the lowest level since Dec. 5, according to composite pricing on Bloomberg, bringing an end to its two-day rally. Bitcoin earlier was down as more than 40 percent from its record high in mid-December. Rival cryptocurrencies alsotumbled, with Ripple diving as much as 28 percent.

Investors “should be prepared to lose all their money” in bitcoin, said Steven Maijoor, chairman of the European Securities and Markets Authority, in a Bloomberg TV interview in Hong Kong. “It has an extremely volatile value, which undermines its use as a currency. And it’s also not broadly accepted.”

Source: Bitcoin Drops Most Since September as Digital Coins Resume Slide – Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.