Cryptocurrencies continue to decline amid tightening regulations
Cryptocurrencies dropped to a nine-month low on Thursday as fears that the adoption of digital assets by the broader market would take longer than anticipated for some continued to rise.
The world's largest cryptocurrency, Bitcoin, fell 6.8% to $6,480, while rivals Ripple, Ether and Litecoin were also in the red.
Crypto investors have been hit with a string of disappointing news of late, with Goldman Sachs pulling back on its near-term plans to set up a crypto trading desk earlier this week which comes just one month after US regulators voted to reject another round of Bitcoin exchange-traded fund proposals.
Elsewhere, crypto trading desk ShapeShift imposed mandatory Know Your Customer procedures, dissuading many of the users who were drawn to cryptocurrencies in the first place.
ShapeShift said the move was "not something we want to do" and was, in fact, a "heavy decision done to derisk under duress."
While many banks had tested the cryptocurrency waters, concerns regarding market manipulation and regulatory uncertainty seemingly prevented a wider institutional adoption.
With the market value of virtual currencies tumbling roughly 75% from its January peak to about $205 bn, analysts now say the next key level to watch for Bitcoin is $5,000, noting that a drop below that figure could trigger an acceleration in losses.