Bitcoin dropped Thursday to trade just above $9,000, a critical level of support that many analysts are watching. The digital currency fell 9.9 percent to a low of $9,157.40 and was trading near $9,206 as of 8:52 a.m. ET, according to CoinDesk’s bitcoin price index, which tracks prices from four major cryptocurrency exchanges.
The decline followed comments from India’s minister of finance, Arun Jaitley, that raised concerns about increased regulation on cryptocurrencies in the country. The New York Times also reported Wednesday that an increasing number of digital currency investors are worried the price of bitcoin and other digital currencies have been inflated by cryptocurrency exchange Bitfinex, which is included in CoinDesk’s price index.
Bloomberg reported Tuesday that in December, the U.S. Commodity Futures and Trading Commission subpoenaed Bitfinex and a cryptocurrency company called Tether, which is run by many of the same executives. Representatives for Bitfinex and Tether did not immediately respond to a CNBC request for comment.
Fundstrat’s Tom Lee, the only major Wall Street strategist to issue formal price targets on bitcoin, said two weeks ago that $9,000 is a “major low” for bitcoin and “the biggest buying opportunity in 2018.” In that Jan.
18 report, Lee also raised his year-end price target for bitcoin to $25,000. Bitcoin three-month performance Other investors are keeping a close eye on the $9,000 to $10,000 range. Read more from cnbc.com…
thumbnail courtesy of cnbc.com