STREAMING NOW: Watch Now

Bitcoin is falling back to Earth. It's now below $7,000

Bitcoin is having a terrible 2018.The digital currency has slumped roughly 50% since the start of the year, dr...

Posted: Mar 30, 2018 12:56 PM
Updated: Mar 30, 2018 12:56 PM

Bitcoin is having a terrible 2018.

The digital currency has slumped roughly 50% since the start of the year, dropping below $7,000 on Friday morning in Asia. Less than four months ago, it was trading close to $20,000.

The latest losses follow moves to step up regulation of cryptocurrencies in Europe and Asia.

In Japan, two virtual currency exchanges closed down this week amid increasing scrutiny from the country's financial services watchdog. The trading platforms, Mr Exchange and Tokyo Gateway, both failed to secure a license from Japan's Financial Services Agency.

The "regulatory clampdown in Japan is a massive negative," said Stephen Innes, head of Asia-Pacific trading at currency broker Oanda.

Related: What is bitcoin?

Japan is one of the countries where trading in bitcoin and other digital currencies exploded last year, helping to drive up prices as mom-and-pop investors piled in.

Almost half of recent global trading in bitcoin was carried out in Japanese yen, according to industry website CryptoCompare.

The Japanese government officially recognized bitcoin as a form of currency last year and started licensing exchanges. But regulators have stepped up scrutiny of the industry after about $530 million in digital currency was stolen from an exchange in January.

New rules in Europe that limit the amount of money that investors can borrow to trade cryptocurrencies could also be weighing on bitcoin's price, said Innes, who is betting it has further to fall.

Other popular virtual currencies such as Ethereum and Ripple have also slumped recently.

Related: So, why shouldn't I buy bitcoin?

Bitcoin has faced a number of other setbacks this year.

Earlier this week, Twitter announced that it would no longer be running ads tied to cryptocurrencies. Both Facebook and Google have announced similar bans on ads, including for initial coin offerings, a fundraising method using cryptocurrencies.

Related: Four things to know about your cryptocurrency at tax time

The US Securities and Exchange Commission has been trying to rein in cryptocurrency trading in recent months, saying investors should only buy and sell them on registered exchanges.

Bitcoin has bounced back from steep drops in the past. It dropped below $7,000 in early February before rallying above $11,000 later that month.

And by Friday afternoon in Asia, it had recovered some of its earlier losses to claw its way back above $7,000.

-- CNN's Emiko Jozuka contributed to this report.

Huntsville
Few Clouds
77° wxIcon
Hi: 88° Lo: 67°
Feels Like: 79°
Florence
Clear
78° wxIcon
Hi: 89° Lo: 70°
Feels Like: 80°
Fayetteville
Clear
73° wxIcon
Hi: 84° Lo: 68°
Feels Like: 73°
Decatur
Clear
78° wxIcon
Hi: 87° Lo: 69°
Feels Like: 80°
Scottsboro
Broken Clouds
72° wxIcon
Hi: 86° Lo: 67°
Feels Like: 72°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 14986

Reported Deaths: 566
CountyConfirmedDeaths
Mobile1996109
Jefferson161488
Montgomery118630
Marshall6499
Tuscaloosa50512
Lee49832
Franklin4476
Shelby43319
Tallapoosa39662
Butler34411
Chambers33623
Madison2964
Baldwin2749
Elmore2637
Etowah23610
DeKalb2213
Coffee2001
Walker1981
Dallas1973
Sumter1916
Lowndes18610
Houston1644
Morgan1621
Autauga1593
Calhoun1413
Choctaw1414
Pike1360
Colbert1362
Marengo1336
Hale1293
Russell1280
Lauderdale1282
Randolph1257
Wilcox1187
Marion11310
Bullock1111
Barbour1101
Clarke1022
St. Clair1021
Pickens934
Talladega912
Greene894
Chilton871
Dale830
Cullman760
Limestone740
Jackson692
Covington651
Washington645
Winston620
Macon602
Bibb591
Crenshaw582
Henry562
Blount491
Escambia433
Lawrence420
Coosa331
Geneva330
Cherokee332
Perry310
Monroe282
Clay272
Conecuh251
Lamar200
Cleburne131
Fayette110
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 20111

Reported Deaths: 336
CountyConfirmedDeaths
Davidson451857
Shelby433694
Trousdale13934
Rutherford99822
Sumner81145
Bledsoe6071
Hamilton55214
Williamson51210
Tipton4263
Lake4090
Putnam3775
Robertson3711
Wilson3558
Out of TN3394
Knox3315
Bedford2654
Montgomery2403
Rhea1950
Hardeman1890
Madison1652
McMinn13413
Loudon1320
Cumberland1091
Fayette1072
Cheatham1040
Dickson1010
Macon1003
Bradley931
Blount823
Maury780
Unassigned750
Washington730
Sevier722
Coffee650
Wayne630
Sullivan612
Gibson611
Monroe572
Hickman540
Lauderdale511
Greene482
Dyer480
Franklin461
Anderson391
Marion361
DeKalb330
Hawkins312
Grundy311
Smith301
Haywood292
Henry290
Marshall281
Jefferson270
White270
Carroll271
Hamblen262
Lincoln260
Weakley260
Meigs250
Obion241
Lawrence240
Overton200
Cocke200
Carter191
Warren190
Morgan170
Cannon170
Campbell171
Jackson170
Crockett151
Roane150
Johnson150
Polk140
Perry130
McNairy120
Henderson120
Chester120
Giles120
Humphreys121
Hardin112
Scott110
Sequatchie100
Fentress100
Stewart90
Claiborne80
Houston70
Benton71
Clay70
Grainger60
Decatur50
Van Buren40
Union40
Lewis30
Moore30
Pickett30
Unicoi30
Hancock10

 

 

Community Events