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Bitcoin fell roughly 7 percent Monday to below $8,000 following weeks of regulatory uncertainty and advertising crackdowns by tech companies.
The cryptocurrency was trading near $ 7,886 as of 3:04 p.m. ET Monday, more than $600 lower than a day earlier, according to data from Coinbase. It’s down more than 42 percent year to date after starting this year above $13,000.
Twitter announced Monday it would ban advertising for cryptocurrencies, following similar bans by Google and Facebook to crack down on fraud in initial coin offerings.
“Today’s news on Twitter’s ban is likely a significant contributor to the steep sell-off,” said Timothy Tam, co-founder of crypto-market intelligence platform CoinFi. “As new retail investors enter cryptocurrency, a large portion of them are trading on raw emotion.”
Bitcoin’s one-day performance
Source: CoinBase
Global regulators have also taken note of potential risks in initial coin offerings, or digital coins released through fundraisers known as token sales.
The U.S. Securities and Exchange Commission stepped up efforts to police the fundraising process through scores of subpoenas reported earlier in March.
Regulatory news has been a main driver of price moves in 2018.
Bitcoin has dropped roughly 60 percent from its high near $20,000 in December, according to Coinbase. It began falling below the key $10,000 level three weeks ago, after the Securities and Exchange Commission said it will require digital asset exchanges to register with the agency.
Prices recovered to the $9,000 range last week following a G-20 meeting where central bankers and finance ministers had “productive” discussions on cryptocurrency. Still, bitcoin has fallen 24 percent in one month, according to Coinbase.
Italy’s central bank leader told reporters after the meeting that cryptocurrencies pose risks but should not be completely banned, according to Reuters.
Other cryptocurrencies, or “alt coins,” have fallen double digits this year.
Bitcoin cash is down roughly 29 percent, ethereum has fallen 45 percent, while litecoin is 40 percent lower since January 1, according to Coinbase. Ripple has dropped more than 38 percent since the start of the year.
