Bitcoin prices dropped 6 percent Wednesday following news that Google, the world’s largest online ad provider, plans to ban cryptocurrency advertising. Facebook, the second largest online ad provider, took similar action in January.

Bitcoin prices hit a low of $8,596.73 as of 9:28 a.m. ET Wednesday, after starting the day above $9,000, according to data from CoinDesk. Tech giant Google announced an update Wednesday to its financial services policy that will restrict advertising for “cryptocurrencies and related content” starting in June.

Bitcoin fell 12 percent in late January after Facebook announced it would ban ads on “binary options, initial coin offerings and cryptocurrency.” The social media giant said it would prohibit ads for financial products and services “that are frequently associated with misleading or deceptive promotional practices.”

A report of a Commodity Futures Trading Commission subpoena on major cryptocurrency exchange Bitfinex and an Securities and Exchange Commission emergency asset freeze on an initial coin offering added to negative sentiment that day. Despite the news Wednesday, Brian Kelly, CEO of BKCM, said the crackdown could be an upside for digital currencies.

“It’s a good thing for the industry, Facebook and Google ads were always a red flag for me,” Kelly said. “It’s not having any impact on price.” Read more from…

thumbnail courtesy of