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 3:03 PM
Updated: Feb 6, 2018 3:03 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."

West Lafayette
Clear
83° wxIcon
Hi: 86° Lo: 62°
Feels Like: 83°
Kokomo
Clear
82° wxIcon
Hi: 85° Lo: 62°
Feels Like: 83°
Rensselaer
Clear
79° wxIcon
Hi: 82° Lo: 61°
Feels Like: 80°
Fowler
Clear
79° wxIcon
Hi: 83° Lo: 62°
Feels Like: 80°
Williamsport
Clear
81° wxIcon
Hi: 84° Lo: 62°
Feels Like: 83°
Crawfordsville
Clear
76° wxIcon
Hi: 84° Lo: 63°
Feels Like: 78°
Frankfort
Broken Clouds
80° wxIcon
Hi: 85° Lo: 63°
Feels Like: 83°
Delphi
Clear
82° wxIcon
Hi: 85° Lo: 61°
Feels Like: 82°
Monticello
Clear
82° wxIcon
Hi: 87° Lo: 61°
Feels Like: 82°
Logansport
Clear
79° wxIcon
Hi: 83° Lo: 61°
Feels Like: 80°
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 52037

Reported Deaths: 2762
CountyConfirmedDeaths
Marion12111693
Lake5677249
Elkhart366260
Allen2971134
St. Joseph221169
Hamilton1735101
Cass16489
Hendricks1470100
Johnson1351118
Porter84938
Vanderburgh8016
Tippecanoe7859
Clark71944
Madison68164
LaPorte62928
Howard61058
Bartholomew60545
Kosciusko5844
Marshall57011
Noble52428
Boone49244
LaGrange48710
Delaware48152
Jackson4793
Hancock47436
Shelby46025
Floyd41844
Monroe36128
Morgan34431
Grant32226
Dubois3196
Henry30318
Montgomery29720
Clinton2903
White27810
Dearborn27123
Warrick26829
Vigo2618
Decatur25732
Lawrence25325
Harrison21822
Greene19932
Miami1942
Jennings17912
Putnam1748
DeKalb1694
Scott1659
Wayne1596
Daviess15117
Perry15110
Steuben1402
Orange13823
Jasper1362
Ripley1357
Franklin1288
Gibson1282
Wabash1193
Carroll1142
Starke1093
Fayette1087
Whitley1086
Newton10110
Huntington942
Jefferson872
Wells831
Randolph804
Fulton761
Jay720
Knox710
Washington681
Pulaski661
Clay645
Posey640
Rush623
Spencer591
Owen531
Benton510
Sullivan511
Adams491
Brown441
Blackford402
Fountain362
Crawford330
Tipton331
Switzerland320
Parke280
Martin260
Ohio230
Vermillion200
Warren151
Union140
Pike120
Unassigned0193

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events