Bitcoin Dives Below $8,000, ‘Painful’
Friday, cryptocurrencies plunged with Bitcoin diving below $8,000 and headed for its biggest weekly loss since December 2013, as worries about a regulatory clampdown globally sent investors to the exits.
The currencies have come off their lows but analysts said the sell-off was probably not over.
This week’s slump brought the total market value of cryptocurrencies down to around $400-B, 50% the high it reached in January, according to industry tracker Coinmarketcap.com.
The market value of cryptocurrencies is calculated by multiplying the number of digital coins in existence by their price, although many question whether that is the right way to value them.
Bitcoin, the biggest and best-known cryptocurrency, fell as much as 15% Friday to a 2-month low of $7,625 on the Luxembourg-based Bitstamp exchange. It clawed back some losses and was down around 4.1 percent at $8,623.50 in mid-morning New York trading.
Currently, Bitcoin is trading at: 8,541.4053, +16.4004, or +0.19%, as of 7:42p GMT, the market is open.
The virtual currency is down by close to 25% this week and almost 40% in Y 2018.
Ethereum and Ripple, also plunged more than 20% at the session lows, Coinmarketcap.com said. Ethereum was last down 18.2%, at $913.37, while Ripple last traded at 80c, down 16.7%.
Retail investors have poured money into digital coins, enticed by the huge run-up in prices. Regulators say cryptocurrencies are highly speculative and dangerous investments.