Bitcoin and other cryptocurrencies tank

The price of stocks isn't the only thing that's falling through the floor. Bitcoin and other cryptocurrencies plunged...

Posted: Feb 6, 2018 10:12 AM
Updated: Feb 6, 2018 10:12 AM

The price of stocks isn't the only thing that's falling through the floor. Bitcoin and other cryptocurrencies plunged on Monday.

Bitcoin was down 15% for the day, while ethereum was down a whopping 20%, according to Coindesk.

The cryptocurrency plunge was happening as the Dow dropped more than 1,000 points on Monday, after closing down 666 points on Friday.

The trouble started brewing in December. The Securities and Exchange Commission and the FBI started to crack down on alleged fraud in fundraising by some cryptocurrency companies and traders.

Digital currency had been operating in a regulatory vacuum since bitcoin's debut in 2009. But regulators started paying closer attention and warned investors about potential scams. The SEC created a Cyber Unit to go after suspected fraudsters.

Garrick Hileman, a cryptocurrency researcher at the University of Cambridge, said some big banks also recently pushed back on digital currencies, which are not issued by any government, unlike traditional currencies.

"The recent spate of bad news continues for cryptocurrencies, with several important banks announcing a ban on the purchase of cryptocurrencies with credit cards," he said.

In Asia, where cryptocurrency is particularly popular, China and South Korea have both cracked down on cryptocurrency trading.

Concerns about new restrictions, and rumors over a potential ban in India, have fueled volatility in crypto prices.

Related: Dow drops more than 1,000 points

Bitcoin is the best known of virtual currencies and experienced a wild run-up in value last year to nearly $20,000 before plunging in December.

Hileman said the dramatic increase last year could also be contributing to the pullback in other cryptocurrencies like ethereum, which didn't experience the same level of volatility prior to the current comedown.

Another popular digital currency, litecoin, dropped 10% within a day on Monday. Ripple, which is sort of like a crypto penny stock, also fell 10%.

New York Coronavirus Cases

County data is updated nightly.

Cases: 2373659

Reported Deaths: 54904
CountyCasesDeaths
Kings31693410717
Queens30446810139
Suffolk2263213507
Nassau2057483244
Bronx2012496686
New York1607744600
Westchester1403622327
Erie984751879
Richmond853091901
Monroe775831154
Orange54237887
Rockland50600768
Onondaga45436707
Dutchess33589483
Albany28239368
Oneida25527541
Niagara22005382
Broome21557384
Saratoga18312186
Ulster16239271
Schenectady15162214
Rensselaer13180154
Putnam1176595
Chautauqua10796155
Oswego9496100
Chemung8956144
St. Lawrence8774115
Ontario846496
Steuben8285156
Cayuga7828100
Sullivan776581
Jefferson737071
Wayne686877
Cattaraugus667596
Genesee6017127
Herkimer5937116
Tompkins588959
Clinton558534
Madison533897
Fulton523297
Livingston514066
Montgomery5023133
Cortland478369
Warren464676
Columbia4608107
Tioga436867
Chenango414886
Otsego413051
Allegany398192
Greene391983
Wyoming388454
Washington387061
Orleans358983
Franklin344415
Lewis315936
Delaware301740
Seneca244459
Schoharie205420
Essex192929
Yates138126
Schuyler126416
Hamilton4073
Unassigned12529
Out of NY0288
Utica
Clear
74° wxIcon
Hi: 74° Lo: 48°
Feels Like: 74°
Oneonta
Partly Cloudy
69° wxIcon
Hi: 74° Lo: 45°
Feels Like: 69°
Herkimer
Clear
74° wxIcon
Hi: 76° Lo: 48°
Feels Like: 74°
Old Forge
Partly Cloudy
74° wxIcon
Hi: 71° Lo: 44°
Feels Like: 74°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
NEW Game Day Deals each week
Follow the 2021 Go the Distance Team - sponsored by Gilroy Kernan & Gilroy
Chapter Photofacial Therapy Giveaway
Looking for work or looking to hire? Check out the WKTV Job Fair!
Saluting Those Who Are Proud 2 Serve