" /> //pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
Published On: Tue, Feb 6th, 2018

First time in three months: Bitcoin drops below $6,200  

Bitcoin plunged 20 percent to a three-month low on Tuesday, its latest sharp loss following a series of setbacks for the cryptocurrency that, with a collapse across global mainstream markets adding to the selling.

The virtual currency fell to $6,190 for the first time since mid-November, according to Bloomberg News, and represents the latest hammering for a unit that saw a stratospheric 26-fold rise last year.

Tuesday’s collapse comes just six weeks after bitcoin hit a record high of $19,511, fuelled by a flood of speculators looking to make a quick buck, with warnings it could fall another 50 percent.

Since those heady days the cryptomarket — which includes dozens of other units — has been pounded by news of crackdowns by governments including in China, Russia and South Korea, one of the biggest markets for the sector.

On Thursday, India said it would “take all measures to eliminate” cryptocurrencies’ use as part of a payment system and in funding illegitimate activities, while Japanese authorities raided a virtual currency exchange after it lost $530 million to hackers.

READ  Four terrorists killed by troops in Bauchi

Central bank in Europe, Japan and the United States have also flagged concerns about the unit and this week saw several commercial lenders say they would stop allowing their customers to buy bitcoin through their credit cards owing to debt concerns.

Stephen Innes, head of trading for Asia Pacific at Oanda, said “the dynamics behind the moves are regulatory clampdowns and investors losing confidence in crypto”.

The sell-off on Tuesday was exacerbated by crushing losses on world stock markets, with the Dow on Wall Street suffering its biggest one-day points loss and wiping out all its 2018 gains.

The global rout comes as panicked investors fret over rising US borrowing costs, leading them to cash in profits after a stellar couple of months that have seen many indexes hit record or all-time highs.

READ  South-East States forge common front to grow their economy

Equities have enjoyed months of surges fuelled by optimism over the US economy, corporate earnings and the global outlook.

But while traders have been piling into equities, pushing many global indexes to record or multi-year highs, there has been growing concern on trading floors about elevated US Treasury bond yields — at four-year highs — and the likelihood of fresh Federal Reserve interest rate hikes.

“The risk-off tone is hitting Bitcoin almost as hard as a global regulator and bank scrutiny,” said Greg McKenna, chief market strategist at AxiTrader. “The latest dent to the Cryptospace has been banks saying they are shutting down the ability of clients to buy bitcoin with their cards.”

“This could end up a full round trip back into the $1,850/$2,966 region.”



Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Most Shared

Recent posts

  • Banks search for lending opportunities

    …explore FOREX, trade finance and other businesses By FELIX OLOYEDE The thinning out of yields in Nigeria’s fixed income market has spurred banks to look for new sources of revenue in 2018. A large number of banks in 2017 took advantage of the federal government’s aggressive borrowing by way of domestic bonds to earn risk […]

  • Profitability: GTB, Zenith raise the bar as bumper returns set new industry pace

    By FELIX OLOYEDE As the results of firms in different sectors of the economy tumble on to the floor of the Nigerian Stock Exchange (NSE), GT and Zenith bank are setting the pace in the financial services sector as their gross revenues and post-tax profits for 2017 pierce new heights.  Both banks that rank as […]

  • Analysts caution over MTN’s bumper offering

    By TESLIM SHITTA-BEY Telecoms giant MTN, Africa’s largest telecommunications group, may be facing one off its tough times yet in recent years as it prepares to declare a full year 2017 headline earnings per share (EPS) of between R1.70 and R1.90 and a basic EPS of between R2.35 and R2.55. The weakening performance of the […]

  • Nestle Nigeria excites investors with high investment yield

    …but traders complain of market illiquidity By OKEY ONYENWEAKU With a dividend payout of N42.50 per share for the year ended 2017, shareholders would ordinarily have had broad smiles plastered on their faces as they pick up their dividend slips (or more recently received credit notices on their phones). The payment of N42.00 as dividend […]

  • Economy: CBN policies will double growth in 2018 –Dr Boniface Chizea

    With the Nigerian economy beating analysts’ 2017 projections for growth by about 20 basis points or 2% over the 1.7 % consensus forecast earlier in the year, private sector economists are growing in confidence that the 2018 growth rate would settle somewhere between 2.6 and 2.9 %.  This would mean that gross domestic product (GDP) […]

  • Food Security: Sustainable cassava seed systems critical – IITA

    Scientists and experts in agriculture have converged on the International Institute of Tropical Agriculture (IITA), Ibadan to concretize efforts on ways to develop sustainable cassava seed systems in Nigeria. This according to them, would enable them to solve problems of low productivity and improve the livelihood of farmers while ensuring food security. Coordinator, Dr Hemant […]

  • Measles campaign in Oyo: Govt deploys over 8,000 officials

    The Oyo State Government has deployed over 8,000 officials for the 2018 Measles Immunisation across the state. The officials, numbering 8,351, will serve as House to House mobilisers, facilitators and town announcers. They will carry out the campaign from March 15 to March 27. The Commissioner for Health in the state, Azeez Adeduntan, while monitoring […]

  • Falana slams NNPC for failing to reveal financial information

    Human rights lawyer, Femi Falana, has criticised the Nigerian National Petroleum Corporation (NNPC) for rejecting a Freedom of Information request he made concerning the operations and finances of the corporation. Falana said the submission that the NNPC is not a public institution is embarrassing in that NNPC’s Counsel did not advert her mind to section […]

  • Exercise Cat Race: Troops nab 12 herdsmen in Benue

    The Nigerian Army on Sunday said 12 herdsmen have been arrested in Benue State. Channels TV reports that the suspects were arrested by troops of 707 Special Forces Brigade presently taking part in the Exercise Cat Race called Ayem Akpatuma in the state. They were arrested for alleged involvement in the destruction of farmlands in […]

  • Veto of Electoral Act: Saraki, Dogara vow appropriate response to Buhari’s amendment

    The Senate President, Dr Bukola Saraki, and Speaker of the House of Representative, Yakubu Dogara, have vowed to jointly give an appropriate response after President Muhammadu Buhari withheld his assent to the Electoral Act Amendment Bill. Spokespersons for the Senate President and Speaker, Yusuph Olaniyonu and Turaki Hassan, revealed this in a statement on Saturday. […]

  • North East: 3.8m benefit from WHO free healthcare

    The World Health Organisation (WHO) says it provided health interventions to 3.8 million people affected by the Boko Haram insurgency in northeast in the past one year. WHO said in its 2017 annual report that it coordinated health sector partners and reached 3.8 million people with health services. The agency said that it worked closely […]

  • Saraki mourns as Sen. Ali Wakili dies at 58

    The President of the Senate Dr. Bukola Saraki has expressed sadness over the death of Sen. Ali Wakili who was the chairman of the Senate committee on Poverty Alleviation. Wakili died at the age of 58 and his death has been confirmed by Saraki in a series of tweets to mourn his deceased colleague. Our […]

  • Pound recovers as World supports Britain in spy case

    The British pound recovered Friday from weakness prompted by a Russian decision to expel British diplomats, as the world rallied in support for London in a crisis sparked by the poisoning of a double agent, analysts said. World stocks, meanwhile, rose slightly at the end of a volatile week as fears lingered of a global […]

  • Akintoye: Killer herdsmen more dangerous than Boko Haram

    Historian, Professor Banji Akintoye, has supported the proposition that the Federal Government should declare killer herdsmen across the country as terrorists. According to him, they appear to be more dangerous than Boko Haram terrorists and therefore, must be stopped before their activities get out of hand. He addressed the issue when he appeared as a […]

  • Delta community lament poor health care system

    Residents of Bomadi and Ughelli North Local Government Areas of Delta state have raised serious concerns over what they’ve described as poor healthcare systems in their community. According to them, the Bomadi General Hospital is the only hospital that serves communities in the entire local government and its environs and for many months now, the […]

  • Niger Delta oil spills: Amnesty Int’l accuses Shell, Eni of negligence

    Rights group, Amnesty International, has faulted reports of oil spills in the Niger Delta by Shell and Eni, and is asking the Federal Government re-open investigations into 89 oil spills in the region. According to the group, the oil giants under-reported the number of spills in the last seven years and also attributed the causes […]