Bitcoin Caves Under Pressure, Remains Below $7,000
The popular digital currency tumbled 19.58%, briefly hitting $6,583.56, which marked the lowest level since November 14. The cryptocurrency managed to recover slightly, last seen at $6,876, according to Kitco.com.
The main downward drivers have been looming regulations for the cryptocurrency space.
The chairmen of the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission are scheduled to testify before the Senate Banking Committee on Tuesday about bitcoin needing a higher level of oversight and a new federal regulatory framework, according to prepared testimony published on Monday.
On top of that, there are growing concerns around bitcoin bans. Last week, Citigroup, J.P. Morgan Chase, and Bank of America announced their decision to prohibit purchases of bitcoin with their credit cards.
China's Financial News reported on Sunday that local authorities will work on limiting virtual trading platforms. Also, Facebook said last week that it will be banning advertisements for cryptocurrencies.
“With U.S. regulators closely scrutinizing one of the world’s largest digital exchanges and Facebook Inc banning adverts that promote cryptocurrencies, Bitcoin is in trouble. Price action suggests that bears are clearly in control, with further losses on the cards as jitters over regulation erode investor appetite further,” Lukman Otunuga, research analyst at FXTM, wrote in a note published on Friday.