Cryptocurrencies resume sell-off, Bitcoin down to test $ 8k mark

Dhwani Mehta FXStreet

All of the top 10 cryptocurrencies (by market capitalization) reversed Friday’s dead cat bounce and resumed its downward spiral, after news broke late-Friday that major US banks have now banned the use of credit cards to buy Bitcoin or other digital currencies, in a move to curb both financial and legal risk. The list of financial institutions includes JPMorgan Chase, Bank of America, Lloyds and Citigroup.

Bitcoin, the world’s largest cryptocurrency, stalled its rebound towards the $ 10k mark and returned to the red zone to challenge the $ 8000 levels once again, down almost -15% on Sunday.

Also, sentiment around the crypto markets remains weighed down by tighter regulatory controls introduced by South Korea, China, Japan and Asia, especially after the Japanese Finance Minister Taro Aso said that they will carefully consider any cryptocurrency securitization. Meanwhile, China wants to further increase regulations in the country, the Chinese-language site Sina reported quoting The Financial Times (FT).

At the time of writing, Bitcoin plummets 13.50% to test $ 8,000. Meanwhile, Ethereum loses -11.71% to $ 847 and Ripple, the 3rd-largest cryptocurrency by market capitalization, tanks --14%. The total market capitalization has dropped below the $ 400 billion figure, down more than 50% from $ 819 billion seen last month.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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