Bitcoin has dropped below $8,000 again today, during a massive cryptocurrency sell-off amounting to more than $60 billion being removed from the market within the last 24 hours.
As of Monday afternoon Bitcoin’s value rests at just under $7,300. This is the lowest value Bitcoin has reached since November of last year.
Bitcoin doesn’t stand alone in this huge price drop either. Several other top digital currencies including Ripple and Ethereum have drastically been reducing in value over the past day. The entire cryptocurrency market has seen such a drop that its value rests under $344 billion and continues to decrease.
The crypto world has been attacked with a slew of bad news lately. Tougher regulations have greatly affected price. India’s Finance Minister, Arun Jaitley, recently shared that the country wants to stop the use of cryptocurrencies for criminal activities, signaling tighter regulations are in store soon for the country.
On Monday, Financial News, a publication that has a close relationship with the People’s Bank of China, stated that the central bank will stop all platforms dealing with cryptocurrency trading and the launch of initial coin offerings (ICOs). Before this, the bank had blocked domestic cryptocurrency exchanges, but it extended its regulations to foreign platforms too.
As explained by the Financial News, “In the future, any related (platform) will be closed as soon as it is found. At the same time, further regulatory measures will be taken with the future development of the situation.”
Other top banks are also beginning to lessen the use of their services to buy digital currencies. Lloyds Banking Group, a major U.K. lender, has explained that it is stopping people from buying cryptocurrencies with credit cards. Bank of America, J.P. Morgan Chase and Citigroup already implemented this exact policy last week.
However, despite the concerns expressed by many, there are still plenty of digital currency advocates, including Tom Lee, a major Wall Street strategist. He explained in January that $9,000 is an extreme low for Bitcoin, making it a great buying opportunity in 2018. Lee still maintains his belief that Bitcoin will eventually reach $25,000.