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Bitcoin plunges to 3-month low, further losses seen ahead

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Investing.com -

Investing.com - Bitcoin prices extended this week's sell-off to hit a three-month low on Thursday, as investors continued to pile on to bearish bets after the U.S. Consumer Finance Protection Bureau issued a warning about virtual currencies earlier in the week.

Bitcoin (BTC/USD) tumbled 6.17%, or $33.49, on Slovenia-based BitStamp to trade at $509.61 during U.S. morning hours. Prices fell to a daily low of $502.99 earlier, the weakest level since May 22.

Bitcoin prices were likely to find support at $492.65, the low from May 22, and resistance at $590.99, the high from August 11.

Elsewhere, the price of a Bitcoin on Bulgaria-based BTC-e slumped 5.4%, or $28.97, to trade at $507.45. Prices hit $494.00 earlier, the lowest since May 22.

Meanwhile, euro-denominated Bitcoin prices (BTC/EUR) declined 5.55%, or €22.73, to trade at €387.00 on U.S.-based Kraken Exchange, the lowest since May 23.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency fell 6.28% to trade at $510.37.

Market sentiment weakened after the Consumer Financial Protection Bureau issued a lengthy set of risks that virtual currencies pose to consumers on August 11.

In issuing an advisory warning, the agency noted that the currencies are not backed by the government, have volatile exchanges rates and are targeted by hackers and scammers.

"Consumers are stepping into the Wild West," CFPB Director Richard Cordray said in a statement.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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