Cryptocurrencies are fighting back after bitcoin dipped below $6000

Cryptocurrencies are fighting back after bitcoin dipped below $6000

Cryptocurrencies are fighting back after bitcoin dipped below $6000

The currency, which surged more than 1,300 percent a year ago, has lost nearly half its value so far in 2018, as more governments and banks signal their intention to crack down.

Bitcoin reached its peak in November, when it hit $19,000, and then began to fall steadily from mid-December. According to data from cryptocurrency tracker Coinmarketcap, the Bitcoin price is now hovering around $6,100. Bitcoin dropped below $10,000 for the third time in a matter of weeks, but it wasn't able to claw its way back this time around.

A bitcoin (virtual currency) coin placed on Dollar banknotes is seen in this illustration picture, November 6, 2017. Bitcoin so far seems to be struggling to live up to any comparison with gold as a store of value, which is an argument made by some of its supporters. Coinmarketcap shows significant declines across the board.

The sell-off appears to be prompted by a number of factors .

Early last week, Facebook banned ads for cryptocurrencies and initial coin offerings, saying such ads are "frequently associated with misleading or deceptive promotional practices".

BitFils, one the prominent local exchanges, reported that Kuwaitis were buying Bitcoin with their credit cards with an average monthly investment of $6,000, including commissions and other transaction fees.

The chiefs of both regulators are expected to recommend that the U.S. government tightens the rules governing the crypto-currency market to reduce the risks of fraud and market manipulation, according to pre-released testimonies.

The entire cryptocurrency market was in double-digit losses on the day. Some experts have suggested that tether, which is pegged to the USA dollar, could be being created to prop up the bitcoin price.

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