Cryptocurrency scams and South Korean disclosure rules drive down price of Bitcoin. This has not been a great week for fans of cryptocurrencies. And it’s only Tuesday, so who knows what’s to come over the next six days?
Bitcoin extends cryptocurrency slide amid Facebook, Tether fears. Cryptocurrencies are extending losses with bitcoin headed for its worst monthly slide since December 2013 on the last day of January trading
Early this morning, the U.K.-based Express newspaper reported that a fruit and vegetable cryptocurrency ripped off investors by shutting down its website and social media accounts. When people logged onto the Prodeum website, they saw only one word: “penis”. That’s not the only negative news for investors.
Bitcoin prices also tumbled after Japanese regulators launched a crackdown following last week’s hacking of Coincheck.
World’s biggest cryptocurrency theft
Dubbed by ABC News as the “world’s biggest cryptocurrency theft”, crooks stole about $645 million on Friday.
In the wake of this, Coincheck halted sales and withdrawals and later promised to return 90 percent of the money. However, details about how this will occur remain unknown, according to Reuters.
According to Coincheck, the theft occurred because the funds were stored in a “hot wallet” rather than a “cold wallet” that’s not linked to the Internet.
As of this writing, one Bitcoin is now valued under $10.000. That’s down almost 50 percent from the around $20,000 price it reached on December 15.
Meanwhile, South Korea has introduced new rules today banning the trade of any digital currencies anonymously, including Bitcoin.
That’s had a negative impact on the prices of Ethereum, Ripple, and Litecoin, as well as Bitcoin and Bitcoin Cash.
They will come to a bad ending?
Earlier this month, one of the world’s savviest investors, U.S. billionaire Warren Buffett, offered a dim view of the future of cryptocurrencies.
“I can say almost with certainty that they will come to a bad ending,” Buffett declared on CNBC.
Downside of cryptocurrency market continues to increase
The downside of the cryptocurrency market (ARKW) (SPX-INDEX) (SPY) continues to increase. Bitcoin fell another 3.3% in the last 24 hours and was trading at $10,978 as of 6:00 AM EST on January 30, 2018. The market capitalization of Bitcoin was $184 billion, and its RSI (relative strength index) level was 40. An RSI below 30 indicates a potential price rise, while a level above 70 indicates a possible pullback in price. The volatility in Bitcoin was close to 72%.
Ethereum also was trading low at $1,170, almost a 2% fall over the last day. Ripple has fallen $1.26, or about 5.1%, during the past 24 hours. Bitcoin Cash has also slowed down, falling 2.7%. It’s trading at $1,633.20.
The other cryptocurrencies among the top ten according to market capitalization also saw a down day. Cardano, NEO, Stellar, and Litecoin fell 7.2%, 1.4%, 8.3%, and 3.2%, respectively.
January is turning into a month to forget for digital currency investors.
Cryptocurrencies are extending losses with Bitcoin headed for its worst monthly slide since December 2013 on the last day of January trading as US regulators ramp up their scrutiny of one of the world’s largest digital currency exchanges while Facebook Inc. is banning ads tied to the industry.
Bitcoin is down about 31% this month, trading at $9,817 as of 10:20 am in Hong Kong, according to composite pricing compiled by Bloomberg. Rival coins ripple, ethereum and litecoin are also down at least 2%, the data show.
“The regulatory oversight and the clampdown is really coming to the fore right now,” Stephen Innes, head of trading for Asia Pacific at Oanda, said by phone from Singapore. “I don’t think we’ve seen the last of it.”
The US Commodity Futures Trading Commission sent subpoenas on 6 December to cryptocurrency trading venue Bitfinex and Tether, a company that issues a widely traded coin it claims to be pegged to the dollar, according to a person familiar with the matter who asked not to be identified discussing private information. The firms share the same chief executive officer.
Facebook, meanwhile, will ban ads on its social network promoting digital currencies, initial coin offerings and binary options, warning they’re “frequently associated with misleading or deceptive promotional practices.”
Cryptocurrencies are still reeling after a record $500 million heist from Japanese exchange Coincheck Inc. on 26 January, further intensifying calls for increased oversight in global trading hotbeds such as South Korea. Bloomberg