Bitcoin plunges 13% and falls below $9,000

The bitcoin train is off the rails.The cryptocurrency plunged 13% on Thursday and fell below $9,000. It's lost...

Posted: Feb 2, 2018 4:44 AM
Updated: Feb 2, 2018 4:44 AM

The bitcoin train is off the rails.

The cryptocurrency plunged 13% on Thursday and fell below $9,000. It's lost more than half its value since mid-December.

Price swings aren't unusual for bitcoin. This one came after the Indian finance minister, Arun Jaitley, reiterated the government's position that cryptocurrencies aren't legal tender.

India will "take all measures to eliminate the use of crypto assets in financing illegitimate activities," Jaitley said. He didn't say what those measures might be.

Once the price dropped below $10,000, the bitcoin bears came out in force, said Garrick Hileman, a cryptocurrency researcher at the University of Cambridge.

Related: Bitcoin falls below $10,000

Bitcoin went on a rocket ride last year, climbing from $1,000 to almost $20,000. But this year has been a different story as regulators scrutinize cryptocurrency.

"The market has been softening since the start of the year," Hileman said.

A "cacophony of bad news" has pushed bitcoin lower this month, said John Sarson, a managing partner at ETF Momentum Investing.

South Korean regulations took effect this week barring anonymous cryptocurrency accounts and instituting a minimum age for trading.

Facebook announced on Wednesday it would no longer allow ads promoting cryptocurrency, part of a crackdown on "financial products and services frequently associated with misleading or deceptive promotional practices."

Related: Facebook bans ads promoting cryptocurrencies

Bitcoin futures launched on the Chicago Mercantile Exchange and the Chicago Board Options Exchange in December. And investors hoped a bitcoin ETF might debut on a financial exchange in the United States.

But the SEC has warned about bitcoin's extreme volatility. Hileman said a bitcoin ETF is unlikely in the United States anytime soon.

On Tuesday, the SEC obtained a court order halting an initial coin offering from what claimed to be the world's first "decentralized bank."

--CNNMoney's Rishi Iyengar contributed to this story.

Terre Haute
Clear
52° wxIcon
Hi: 60° Lo: 44°
Feels Like: 52°
Robinson
Clear
52° wxIcon
Hi: 59° Lo: 41°
Feels Like: 52°
Indianapolis
Few Clouds
48° wxIcon
Hi: 56° Lo: 46°
Feels Like: 43°
Rockville
Clear
49° wxIcon
Hi: 59° Lo: 43°
Feels Like: 44°
Casey
Clear
50° wxIcon
Hi: 59° Lo: 40°
Feels Like: 50°
Brazil
Clear
52° wxIcon
Hi: 59° Lo: 45°
Feels Like: 52°
Marshall
Clear
52° wxIcon
Hi: 59° Lo: 40°
Feels Like: 52°
Sunny and breezy
WTHI Planner
WTHI Temps
WTHI Radar

Latest Video

Image

Saturday Morning Forecast Update

Image

Casey's General Store works to help Wabash Valley veterans and their families

Image

Here's the perfect Halloween morning breakfast idea

Image

North Central-Perry Central

Image

North Knox-Evansville Mater Dei

Image

Linton-North Posey

Image

Sullivan-Vincennes Lincoln

Image

Washington-Edgewood

Image

TH South-Cathedral

Image

Progress is moving along with the new THPD headquarters

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 408648

Reported Deaths: 9994
CountyConfirmedDeaths
Cook1864055469
DuPage24696619
Lake21819518
Will19946439
Kane18030351
Winnebago11084186
St. Clair8247224
Madison7554158
McHenry6953121
Champaign658528
Unassigned6324283
Peoria489378
Sangamon445064
McLean439237
Rock Island434995
Kankakee368281
Macon355556
Kendall293830
Tazewell290559
LaSalle265268
DeKalb260543
Adams213624
Coles211140
Boone203825
Williamson201661
Vermilion189311
Clinton187731
Whiteside169130
Jackson163726
Knox141821
Randolph135815
Ogle13548
Effingham12854
Stephenson11829
Marion117023
Grundy10867
Franklin108110
Morgan103226
Monroe101630
Bureau98617
Jefferson97352
Christian88831
Henry8797
Macoupin85411
Lee8402
McDonough81822
Union81025
Douglas7879
Shelby74612
Livingston73012
Woodford72315
Fayette72024
Crawford6766
Montgomery66716
Logan6454
Saline63711
Fulton6222
Warren5619
Jo Daviess5569
Iroquois53919
Bond5329
Wayne53217
Carroll49013
Jersey48521
Perry48516
Cass47411
Moultrie4706
Pike4237
Johnson3920
Lawrence3628
Richland34718
Mason3465
Hancock3454
Washington3392
Clay33514
Greene32917
Clark32818
Cumberland3136
Mercer3116
White2895
De Witt2826
Piatt2822
Jasper28010
Wabash2566
Pulaski2461
Ford21716
Menard1911
Marshall1713
Edgar16711
Massac1652
Alexander1471
Hamilton1432
Henderson1360
Brown1210
Scott1160
Edwards1140
Gallatin1132
Putnam1010
Schuyler1011
Stark963
Calhoun700
Hardin580
Pope441
Out of IL20

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 175893

Reported Deaths: 4286
CountyConfirmedDeaths
Marion27107796
Lake15351372
St. Joseph10252178
Elkhart9964148
Allen9275235
Hamilton6799122
Vanderburgh648473
Tippecanoe436516
Porter379753
Hendricks3599139
Monroe351538
Johnson3506133
Delaware332081
Clark322467
Vigo296943
Madison275899
LaPorte256267
Cass237426
Kosciusko223529
Warrick214066
Floyd196269
Howard178467
Wayne165634
Dubois158827
Marshall157830
Bartholomew155359
Grant145340
Henry143830
Boone137850
Hancock132444
Noble131135
Jackson126920
Dearborn111028
Lawrence106238
Morgan106040
Clinton100816
Gibson99612
Shelby97937
Daviess97336
Knox91010
Fayette87522
DeKalb86713
LaGrange86115
Harrison85924
Putnam81717
Posey8138
Jasper7665
Miami7355
Steuben7189
Montgomery69422
White67016
Adams6518
Greene61138
Scott58716
Decatur58339
Ripley5338
Whitley5326
Wabash52610
Wells51712
Clay5137
Huntington5135
Starke5029
Sullivan49114
Randolph48811
Spencer4466
Orange44125
Perry44114
Fulton42510
Jefferson4235
Washington4223
Jennings40913
Franklin40626
Jay3996
Pike37618
Carroll37013
Fountain3623
Tipton29823
Rush2964
Vermillion2951
Blackford2766
Parke2754
Newton25211
Owen2291
Martin2100
Pulaski1884
Crawford1751
Brown1563
Ohio1477
Union1300
Benton1200
Switzerland1080
Warren1081
Unassigned0236