Bitcoin Prices Continues Precipitous Decline

Bitcoin prices have dropped to a 2 and a half month low after flirting with $20,000 back in December. The world's best known-cryptocurrency extended its losses on Monday, falling more than 10 percent. Bitcoin prices traded as low as $7,289 on Luxembourg-based Bitcoin exhange Bitstamp

The currency, which gained notoriety last year, surged more than 1,300 percent in value, but prices fell after governments and banks signaled their intent to regulate cryptocurrencies. 

It wasn't just Bitcoin that was feeling the woes, other 'Alt-Coins' suffered double-digit declines in prices on Monday as well after British Bank Lloyds Banking Group said Sunday it would prevent customers from using their credit cards to buy bitcoins. 

Other banks like JPMorgan Chase & Co and Citigroup also announced bans on buying currency, while India's government said they plan on taking steps to make virtual currencies like Bitcoin illegal within its payments system and will regulate exchanges.

Another thing that has investors worried are the rumors Bitcoin's huge jump in value last year was because of manipulation of a cryptotoken called Tether. The anonymous report says without Tether, Bitcoin would be worth about $4,500 - a little less than half of what it is worth today.

Photo: Getty Images


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