Bitcoin continued to weaken in the last five days, even down below US $ 7,000 for the first time since November 2017 and dragging other digital currencies down.
This weakening followed the increasing reaction from central banks and government regulators to speculative madness that kept cryptocurrency prices soaring last year.
The largest digital currency is traded at the level of US $ 6,777 at 6:20 pm according to Coinbase data. Bitcoin has slumped around 65% from a record high of US $ 19,511 in December 2017. Another coin, also called altcoins, also slumped on Monday, with Ripple down by 21%. Ethereum and Litecoin also weakened.
"Although there is no fundamental factor that triggers this weakening, the parabolic growth experienced by this market slows down at some point," said Lucas Nuzzi, senior analyst at Digital Asset Research, as quoted by Bloomberg.
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A number of negative news have hit the price of digital assets in the past week. Lloyds Banking Group Plc joins a number of major credit card issuers including JPMorgan Chase & Co. and Bank of America Corp. and said they stopped buying cryptocurrency with cards issued.
SEC chief Jay Clayton said he supports efforts to clarify the issue of digital currency and that existing regulations are not designed with such trade thinking, according to a script prepared for a Senate Banking Committee meeting on virtual currency.
Bitcoin's weakness since Christmas last year coincided with investors gradually exiting riskier assets across the equity market, with stock foam retreating around the world.
Regulators in some countries are also trying to control the trading of these risky assets. China will block all websites, including overseas platforms, linked to cryptocurrency trade and initial coin offering (ICO) in a bid to ease market speculation, according to a report by the South China Morning Post.
"International transactions and regulatory avoidance (for Bitcoin) are still underway. However, the risks are still there, with some illegal activities and fraud up to the pyramid sales system, "said one source from the Central Bank of China.
Meanwhile, Yonhap News reported North Korea is trying to hack South Korean programs related to the eyes of cryptocurrency to steal digital currency.
In addition, authorities in South Korea and other countries are considering increasing oversight and regulation of the industry, prompting an ongoing sell-off.
However, some Bitcoin supporters remain indifferent to some of the negative sentiments
"There are some catalysts: people who pay taxes, and general trend reversals," said Kyle Samani, managing partner at hedge fund cryptocurrency, Multicoin Capital. "Overall, this weakness is quite healthy considering the rally strengthening in November-January.
In addition, in India, it also seeks banks to tighten regulation on Bitcoin. Indian Government Secretary of the Economy Division, SC Garg, said the government will make regulations on cryptocurrency transactions to be more easily monitored. Discussions on the regulation are under way and expected to be completed by 31st March 2018.