After run at $10,000, bitcoin resumes downtrend

March 12, 2018

The price for bitcoin opened higher Monday, and well off Friday’s low, as the world’s No. 1 cryptocurrency looked to claw back some recent losses. However, after making a run at the $10,000 mark early Monday, bitcoin slumped back into the red.

A single bitcoin BTCUSD, -5.21%recently changed hands at $8,990.79, down 5.7% on the day.

Bitcoin dropped about 20% last week, with analysts blaming the selloff in part on regulatory worries, such as a Wednesday warning on crypto-trading platforms from the Securities and Exchange Commission.

The People’s Bank of China also sounded downbeat on digital currencies last week. Zhou Xiaochuan—the central bank’s governor—said Friday that Beijing does not recognize bitcoin and other virtual currencies as legitimate forms of payment, according to a Reuters report.

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“Cryptocurrencies are still in the early stages of development,” said Matthew Newton, an analyst at eToro, which offers a crypto-trading platform, in a recent note. “As the market grows, regulatory scrutiny is to be expected. Appropriate regulation should ultimately help promote best practice and afford protection to the consumer.”

Other major cryptocurrencies started the week in the red.

Ether is down 3% at $700.47, Bitcoin Cash is off 7.8% at $1,051.42, Litecoin is down 4.4% at $180.13 and Ripple is at $0.80, down 3.7%, according to news and research firm CoinDesk.

On Monday, futures markets drifted lower. The Cboe Global Markets March contract XBTH8, -1.48%closed down 3.1% to $8,855, while the CME Group Inc. March contract BTCH8, -0.06%finished at $8910, down 1.2%

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