Markets

Bitcoin is below $7k at its lowest since November amid a credit card ban

The price of bitcoin has slumped more than 10 per cent to a three-month low today as cryptocurrencies face attacks from all sides.

At the time of writing, bitcoin was trading 14.83 per cent lower at $6,972.25. In the past month, the digital currency's value has fallen by more than $10,000, wiping more than $150bn off its market capitalisation.

“To say bitcoin investors have not enjoyed the best start to 2018 would be an understatement, and the cryptocurrency’s struggles have continued today as it dipped under $7,500 for the first time since it first crossed the threshold in November," said Dennis de Jong, managing director at UFX.

The major sell off comes after Lloyds Bank, Virgin Money and US investment banks banned customers from buying bitcoin and other cryptocurrencies using credit cards.

Fears of tightening regulations are also turning sentiment negative: China, India and South Korea have continued to discuss stricter regulations and Facebook last week decided to ban adverts promoting cryptocurrencies.

Reuters also reported that US market regulators will tell a congressional hearing tomorrow that digital currencies demand increased oversight and could require a new federal regulatory framework.

De Jong was optimistic about bitcoin's fate, saying: “Bitcoin has bounced back from similar collapses before during its short but volatile history, and it would hardly be a shock if those claiming the bubble has burst are surprised by yet another change in fortunes.”

However, Miles Eakers, chief market analyst at foreign exchange specialists Centtrip predicted the cryptocurrency would continue to fall to $5,000 a coin.

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