Wild trading in Bitcoin has seen the prices tumble. The price of bitcoin is still up more than 200% since September, the product of a dramatic bull rally sparked in part by hedge fund managers, banks and other companies appearing to embrace cryptocurrency. The fall today wiped over $450 billion off the ledgers.
12 months ago Bitcoin was closer to $10,000 so there is a lot of potential downside. Bitcoin is completely unregulated so there are extraordinary risks. The Treasury said the IRS is considering requiring reporting transaction with a value over $10,000,
Kevin Turner has stepped down as CEO of crypto mining firm Core Scientific. It appears many have lost confidence. The selloff was close to a capitulation before bouncing back. The weakness is not isolated in crypto, suggesting that the moves could be part of a larger rotation by investors away from more speculative trades.
China, which is developing its own government-run cryptocurrency, reasserted its rules against other digital currencies on Tuesday, banning financial companies from providing services for crypto trading. The moves in China are largely intended to dissuade citizens from speculating on unregulated investments.
Increased regulation is evidently necessary but so far regulators have not taken any material steps. Exchange ripoffs are abundant as there are no protections for investors. Ransomware criminals will find it increasingly difficult to liquidate illicit crypto assets.