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 Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam