Bitcoin price drops below $6,000

The world biggest and best-known cryptocurrency slumped below the symbolic $10,000 threshold yesterday (Wednesday February 1), but its value crashed further overnight to about $8,600.

Bitcoin has fallen by more than 56 percent since the turn of the year, after peaking at nearly $20,000 in December 2017.

CoinMarketCap price charts show that bitcoin has been falling for weeks, though this latest crash has been blamed on mounting confusion surrounding the Indian Government’s stance on cryptocurrencies.

Yesterday, the Finance Minister Arun Jaitley spooked investors when he announced plans to “eliminate” the use of digital currencies for payment purposes.

He said: “The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.

“The Government will explore use of blockchain technology proactively for ushering in digital economy.”