Bitcoin plunges nearly 9% on fears of greater oversight from US regulators

FAN Editor

Bitcoin tanked Wednesday after indications of greater scrutiny from U.S. regulators.

The digital currency fell nearly $500 at one point, or about 8.7 percent to a low of $5,109.70, before regaining some of the lost ground, according to CoinDesk. The day’s low marked the digital currency’s lowest level since Thursday, according to CoinDesk. Bitcoin hit a record high above $5,800 Friday.

The U.S. Commodity Futures Trading Commission on Tuesday released a report titled “A CFTC Primer on Virtual Currencies.” The report said as a commodity, virtual currencies like bitcoin fall under the oversight of the commission when they are used “in a derivatives contract, or if there is fraud or manipulation involving a virtual currency traded in interstate commerce.”

Bitcoin three-month performance

Source: CoinDesk

The Chicago Board Options Exchange has said it plans to launch its own bitcoin derivatives trading products by early next year.

Other digital currencies fell Wednesday as well. Ethereum fell more than 7 percent to $292 before regaining some of the decline.

Bitcoin has proved resilient to regulatory scrutiny so far. It plunged $2,000 in September after a Chinese government crackdown on digital currencies but has since more than recovered those losses.

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