Bitcoin, Other Cryptos Lackluster as Volatility Continues

10 April 2018, 17: 31
© Reuters.  Bitcoin struggled for direction on Tuesday. © Reuters. Bitcoin struggled for direction on Tuesday.

Bitcoin and other virtual coins inched down on Tuesday, as cryptocurrency volatility continues.

Bitcoin was trading at $6,752.7 decreasing 0.19% as of 7:59 AM ET (11:59 GMT) the Bitfinex exchange. The virtual currency is far from its peak of $20,000 in December 2017 and has struggled to recover since falling below $6,000 in February.

The market capitalization of cryptocurrencies has fallen by almost 60% to $259 billion, according to data from CoinMarketCap.

Some investors say increased regulation will lead to reduced volatility and maturity.

“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature,” Adrian Lai, founding partner at Orichal Partners, told the South China Morning Post.

The price of Bitcoin has remained volatile as global watchdogs have struggled with how to regulate virtual currencies. The Securities and Exchange Commission has said that securities laws to digital currency exchanges, while in the UK, lawmakers are launching an inquiry into cryptocurrencies.

Meanwhile researchers at Bank of America (NYSE:BAC) say the Bitcoin bubble is bursting. The virtual currency is following the trend of the other massive asset-price bubbles in history, analysts lead by Chief Investment Strategist Michael Hartnett wrote in a note.

Other virtual currencies were mixed, with rival Ethereum, the world’s second largest cryptocurrency by market cap, rising 0.07% to $396.07 on the Bitfinex exchange. Ripple, the third largest virtual currency, decreased 0.42% to $0.48144 while LiteCoin was at $113.69, a decline of 1.26%.