Global Stock Markets
Bitcoin shed another 4 per cent of its value after a media report that the US justice department had begun criminal investigations into potential price manipulation of several cryptocurrencies, taking its losses for the week so far to 14 per cent.
The largest of the cryptocurrencies, bitcoin was trading around $7,300 on Thursday morning, according to Coinbase figures, down from $8,500 on Monday.
Bloomberg reported the move by the Department of Justice earlier on Thursday. Other digital coins also fell on the news — Bitcoin Cash, a bitcoin clone, lost 6 per cent, while ether, the cryptocurrency used on the Ethereum blockchain, was down some 6.5 per cent.
Regulators across the globe have become increasingly vocal about cryptocurrency risks.
But enforcement actions, led by the US’ Securities Exchange Commission and Commodity Futures Trading Commission, have so far focused on policing initial coin offerings — the novel fundraising mechanism which gained popularity last year, as a way for entrepreneurs to raise digital money while providing scant, if any, guarantees for investors.
There have long been fears that unregulated cryptocurrency markets are vulnerable to manipulation by traders. After crashing from a $19,000 high in December to $7,200 by February, bitcoin rallied back up to $11,000 in March. It did not hold the high ground for long: it dipped below $7,000 in April.
The largest of the cryptocurrencies, bitcoin was trading around $7,300 on Thursday morning, according to Coinbase figures, down from $8,500 on Monday.
Bloomberg reported the move by the Department of Justice earlier on Thursday. Other digital coins also fell on the news — Bitcoin Cash, a bitcoin clone, lost 6 per cent, while ether, the cryptocurrency used on the Ethereum blockchain, was down some 6.5 per cent.
Regulators across the globe have become increasingly vocal about cryptocurrency risks.
But enforcement actions, led by the US’ Securities Exchange Commission and Commodity Futures Trading Commission, have so far focused on policing initial coin offerings — the novel fundraising mechanism which gained popularity last year, as a way for entrepreneurs to raise digital money while providing scant, if any, guarantees for investors.
There have long been fears that unregulated cryptocurrency markets are vulnerable to manipulation by traders. After crashing from a $19,000 high in December to $7,200 by February, bitcoin rallied back up to $11,000 in March. It did not hold the high ground for long: it dipped below $7,000 in April.
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