Bitcoin's 'many problems' puzzle regulators

Bitcoin is on a rollercoaster ride.The cryptocurrency tumbled as much as 13% Tuesday. Bitcoin briefly fell bel...

Posted: Feb 6, 2018 2:03 PM
Updated: Feb 6, 2018 2:03 PM

Bitcoin is on a rollercoaster ride.

The cryptocurrency tumbled as much as 13% Tuesday. Bitcoin briefly fell below $6,000 for the first time in three months before recovering most of its earlier losses. It has lost nearly two-thirds of its value since it peaked above $19,000 in December.

Other digital currencies, including ethereum, litecoin and ripple, mirrored bitcoin's drop.

Stocks took a beating on Monday. The Dow plunged almost 1,600 points, the biggest point decline in history during a trading day.

"Crypto is just as much a part of this [selloff] as everything else in the world," Mati Greenspan, a Tel Aviv-based analyst at investment firm eToro, wrote in a note to clients Tuesday.

Related: Bitcoin and other cryptocurrencies tank

Bitcoin's volatility comes ahead of a Senate Banking Committee hearing on cryptocurrencies. Securities and Exchange Commission Chairman Jay Clayton and Commodity Futures Trading Commission Chairman J. Christopher Giancarlo are scheduled to testify.

In prepared remarks, Clayton highlighted weaknesses in digital currencies' regulation.

"The currently applicable regulatory framework for cryptocurrency trading was not designed with trading of the type we are witnessing in mind," Clayton said.

The SEC has already stepped up enforcement. Last week, it obtained a court order halting an initial coin offering from what claimed to be the world's first "decentralized bank."

Cryptocurrency investors have also been alarmed by sharpened rhetoric around online currencies.

On Tuesday, Switzerland-based Bank for International Settlements General Manager Agustin Carstens called bitcoin a "combination of a bubble, a Ponzi scheme and an environmental disaster."

Carstens' comments followed scrutiny Monday from Mario Draghi, president of the European Central Bank. Draghi said online currencies were "very risky assets" and that prices were "entirely speculative."

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 36287

Reported Deaths: 1249
CountyConfirmedDeaths
Hinds299254
DeSoto195920
Madison148439
Jones122449
Harrison117716
Rankin112619
Neshoba104677
Forrest103843
Lauderdale96681
Scott82415
Jackson79819
Washington73713
Copiah67016
Leake63420
Lee62822
Oktibbeha61928
Grenada6049
Warren60021
Holmes59541
Lamar5837
Wayne56519
Yazoo5607
Lowndes54817
Leflore53456
Lincoln53335
Lafayette5064
Pike50520
Sunflower5048
Monroe46135
Panola4546
Covington4465
Simpson4433
Bolivar41218
Tate39213
Attala38624
Newton37610
Adams35820
Pontotoc3556
Marion34512
Claiborne30811
Pearl River30332
Winston30111
Chickasaw30019
Marshall2923
Jasper2816
Noxubee2799
Walthall2708
Clay26111
Union25412
Smith25212
Coahoma2306
Clarke22325
Lawrence2132
Yalobusha2089
Tallahatchie1954
Kemper18414
Carroll18211
Montgomery1793
Calhoun1705
Humphreys16910
Hancock14813
Itawamba1478
Tippah14611
Webster13411
Jefferson1283
Prentiss1274
Jefferson Davis1254
Tunica1253
George1233
Greene11610
Amite1123
Alcorn1072
Tishomingo1061
Quitman1011
Wilkinson989
Perry914
Stone772
Choctaw764
Franklin542
Sharkey480
Benton470
Issaquena101
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 54768

Reported Deaths: 1096
CountyConfirmedDeaths
Jefferson6746170
Mobile4904140
Montgomery4547112
Tuscaloosa269053
Madison22689
Marshall198011
Shelby169125
Lee159637
Morgan13385
Baldwin127711
Walker107532
Elmore106721
Etowah101114
Dallas10029
DeKalb9677
Franklin93816
Autauga69815
Russell6860
Unassigned67928
Chambers67730
Butler65229
Limestone6393
Tallapoosa63069
Cullman6156
Houston6077
Lauderdale5776
St. Clair5443
Calhoun5155
Colbert5096
Escambia4888
Lowndes48422
Pike4795
Jackson4352
Coffee4284
Covington41612
Talladega4017
Barbour3992
Dale3951
Bullock37810
Hale35423
Marengo35411
Chilton3312
Blount3201
Clarke3176
Wilcox3038
Winston2995
Sumter29213
Marion29014
Pickens2746
Randolph2639
Monroe2603
Perry2502
Conecuh2318
Bibb2241
Macon2199
Choctaw21712
Greene1989
Henry1553
Washington1488
Lawrence1360
Crenshaw1323
Cherokee1247
Geneva980
Lamar891
Clay852
Fayette851
Coosa661
Cleburne451
Out of AL00
Tupelo
Scattered Clouds
88° wxIcon
Hi: 91° Lo: 71°
Feels Like: 92°
Columbus
Few Clouds
92° wxIcon
Hi: 91° Lo: 70°
Feels Like: 101°
Oxford
Clear
90° wxIcon
Hi: 90° Lo: 68°
Feels Like: 92°
Starkville
Scattered Clouds
90° wxIcon
Hi: 90° Lo: 67°
Feels Like: 95°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather