Bitcoin leads cryptocurrency carnage, crashing below $8,000 for 1st time since November

2 Feb, 2018 13:00 / Updated 6 years ago

The cryptocurrency market continued to plunge on Friday with investors dumping digital coins after another global regulator announced an upcoming crackdown.

Bitcoin fell below $8,000, shedding 60 percent of its value in a matter of 45 days, when a $20,000 record was broken.

Numbers two and three, ethereum and ripple, plunged 28 and 33 percent respectively. All but one of the top 100 cryptocurrencies on CoinMarketCap's list were trading no less than 20 percent lower. DigixDAO was the only exception, with the digital currency trading 45 percent higher.

The decline followed reports on increased regulation in India and potential price manipulation at a major exchange. India’s Finance Ministry declared on Thursday that cryptocurrencies are illegal in the country and the government fully intends to eliminate their use.

The reports that two major exchanges, Bitfinex and Tether, had been investigated by the US regulators and the Facebook ad ban also spooked cryptocurrency investors this week.

The last six weeks have seen bitcoin's biggest price collapse since December 2013.

Cryptocurrencies bounced back dramatically later on Friday. By 14:00 GMT, bitcoin was trading close to $8,900.

For more stories on economy & finance visit RT's business section