World Economy

Bitcoin Falls to Four-Month Low

Bitcoin Falls to Four-Month LowBitcoin Falls to Four-Month Low

Bitcoin dropped to a more than four-month low on Friday, continuing a downtrend after more negative headlines such as Japan’s financial regulator ordering six digital currency exchanges to make improvements on their anti-money laundering systems.

The original virtual currency fell as low as $6,085.59 on Bitstamp, the lowest since early February and not far from this year’s trough of just below $6,000. It was last down more than 8% at $6,177.45, Reuters reported.

So far in 2018, bitcoin has fallen nearly 56%, after soaring more than 1,300% last year.

The order from Japan’s Financial Services Agency on Friday includes bitFlyer, Inc, one of the country’s largest cryptocurrency exchanges.

Early this week, the cryptocurrency world was racked by news South Korean cryptocurrency exchange bithumb was hacked of 35 billion won ($31.5 million) worth of virtual coins.

The bithumb attack was preceded earlier this month by a “cyber intrusion” at Coinrail, a relatively small cryptocurrency exchange in South Korea, causing a loss of about 30% of the coins traded on the exchange.

“Often swings in prices are blamed on events like hacks of crypto exchanges, or news from regulators,” said Chris Tse, founding director of the Cardstack project in New York, which is leading efforts to create a new blockchain-based internet.

Blockchain, the system powering cryptocurrencies like bitcoin, is a shared database that is maintained by a network of computers connected to the Internet.

Tse noted that bitcoin, even before these recent events, has been in a bearish momentum.


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