The world biggest and best-known cryptocurrency slumped below the symbolic $10,000 threshold today (Wednesday February 1), as its value continues to slide.
Bitcoin has crashed by more than 50 percent since the turn of the year, after peaking at nearly $20,000 in December 2017.
CoinMarketCap price charts show that bitcoin has been falling for weeks, though this latest crash has been blamed on mounting confusion surrounding the Indian Government’s stance on cryptocurrencies.
Yesterday, the Finance Minister Arun Jaitley spooked investors when he announced plans to “eliminate” the use of digital currencies for payment purpose
He said: “The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.
“The Government will explore use of blockchain technology proactively for ushering in digital economy.”
The news comes after the South Korean Government insisted that it would not be banning cryptocurrencies like bitcoin, Ripple and Ethereum, instead suggesting that they will be more heavily regulated.
But Oliver von Landsberg-Sadie, founder of cryptocurrency exchange BitcoinBro, has argued that bitcoin is currently just experiencing “growing pains” and actually welcomes further regulation in South Korea.
“You referred to regulatory setbacks but I think these are regulatory steps forward.
“South Korea’s stance on making sure that the exchanges know who they’re dealing with is a very positive step. But it did have a hit on bitcoin.”
In another blow for bitcoin, social media giant Facebook will soon ban adverts that promote cryptocurrencies.
Rob Leathern, Facebook’s product management director: “We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception.
“That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”
He added: “This policy is part of an ongoing effort to improve the integrity and security of our ads, and to make it harder for scammers to profit from a presence on Facebook.”
To make matters worse, the the security of cryptos was called into question last week after £380million worth of NEM was stolen by hackers who targeted the popular Coincheck exchange.
Bitcoin investors have since been advised to keep their investments safe in an offline ‘cold’ wallet to prevent future hacks.