Bitcoin Struggles Below $6 Thousand While Other Cryptocurrencies Continue To Plummet

Bitcoin was reported to be at its lowest level since October, as cryptocurrencies continue their decline amid worries over tighter regulation by the US and the rest of the world.

Bitcoin was down 11 percent to $6.338 at 9:24 a.m. London time, after earlier sliding to $5.922. Other cryptocurrencies such as litecoin, ethereum, ripple, and bitcoin cash have also delved around 11 percent.

Tuesday’s latest decline echoes Friday’s 15 percent Bitcoin plummet. According to data provider, CoinMarketCap, the global cryptocurrency market has now shrunk to $285 billion from a whopping $830 billion reported in January.

There are a number of factors currently affecting the cryptocurrency market, more specifically the rising pressure coming from Asia to regulate the market and the fears over the role of Tether in the bitcoin market. The world’s biggest banks, including Lloyds Bank and JPMorgan Chase, have recently banned the use of credit cards to buy digital currency.

General Manager of Europe’s Bank for International Settlements, Augustin Carstens, said that authorities are within their right to clamp down on digital currencies because of their correlation to the established financial system. According to Carstens, central banks, finance ministries, tax offices, and financial market regulators should regulate the “digital frontier”.

Bitcoin dived below its 200-day moving average for the first time in more than two years on Tuesday, marking the first to do so since August 2015, when it sank as much as 24 percent in two weeks.

“The most famous digital currency has fallen 69 percent from December’s record high, and almost 56 percent from the start of the year.” Said Hussein Sayed, chief market strategist at forex broker, FXTM.

Chief market analyst at foreign exchange business Centtrip, Miles Eakers, said on Monday that governments across the world continue their crackdown on retail investors. The People’s Bank of China has said that it will step up measures to remove onshore and offshore platforms associated top virtual currency trading or ICOs. According to Eakers, the move is an attempt “to prevent financial risks”.

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