The price of the No. 1 digital currency extended a brutal slide on Wednesday, adding to its recent losses amid another wave of negative news.
A single bitcoin
was last traded at $8,423.98, down 7.9%, after hitting an overnight low $8,370.48 early Wednesday, its lowest level since Feb. 13.
Google updates financial services
Losses for bitcoin intensified after Google
announced it was updating its financial-services policy, saying ads will no longer be allowed to service “cryptocurrencies and related content.”
Google said the related content includes those for initial coin offerings, or ICOs, cryptocurrency exchanges and wallets. While the news isn’t ideal for crypto investors.
That news comes as the crypto industry faces another hearing on Capitol Hill.
Later Wednesday, the Senate’s Subcommittee on Capital Markets, Securities and Investment will hold a hearing called “Examining Cryptocurrencies and ICO Markets.” After regulation issues dogged the market, investors will be hoping for some good news to stop the rot.
“All eyes are on today’s ICO Senate hearing,” said Jeff Koyen, president of 360 Blockchain USA.
“But I do think the Google news is pushing the market down. I’ve been watching prices just about all night, and this slide started when US markets woke up and learned about the upcoming ban.”
Adding to the woes of digital assets was a report from European financial services company, Allianz. In a report titled “Beyond the Bitcoin Bubble, the Benefits of Blockchain” the company echoed recent sentiments about the bubble nature of the move and how comparatively it suggests trouble ahead.
“The hyperbolic price movements of bitcoin since its early 2009 inception have been very bubblelike in nature,” wrote Stefan Hofrichter, head of global economics and strategy.
”This brings us to a key question: what is the fair value of a bitcoin? In our view, its intrinsic value must be zero.”
The digital asset market got another working over from Washington when the Financial Services Committee had a hearing on cryptocurrencies and ICO markets. The committee met with some industry experts to ask and explore the regulatory issues the industry faces.
The hearing began with Democratic Rep. Brad Sherman calling all cryptocurrencies “a crock” and saying they are helping criminals and terrorists shift money around the world. The tensions grew when Michigan Republican Bill Huizenga, chairman of the subcommittee, stated his intention to push for greater oversight.
“This panel, this Congress is not going to sit by idly with a lack of protection for investors,” he said.
Other cryptocurrencies have tracked bitcoin lower. Ether was down 8.7% at $631.66, Bitcoin Cash was down 9% at $972.38, Litecoin is off 7.6% at $162.65, and Ripple was last traded at $0.72, down 9%, according to news and research firm CoinDesk.
Futures markets are too in the red. The Cboe’s March contract
which expires Wednesday, is down 9.3% at $8,240, while the most-active April contract
was down 9.3% at $8,230. The CME Group Inc.’s March contract
is down 8.8% at $8,270.