Market Overview

Bitcoin Is Having A Brutal Day

Bitcoin Is Having A Brutal Day

The price of one bitcoin traded as low as $2,115.85 on Thursday before recovering some of the day's losses and trading above $2,350. Nevertheless, the digital currency is still lower by more than 8 percent compared to Wednesday's close, demonstrating just how volatile the market for bitcoin can be.

As a whole, the combined global value of digital currencies were trading below $100 billion on Thursday, CNBC reported. By comparison, the global market value of digital currencies hit a record of $117.21 billion on Monday.

It wasn't even a full week ago that bitcoin traded above the $3,000 mark for the first time ever which implies a more than tripling in value for 2017. Bitcoin gained in value over the weekend after major Chinese exchanges confirmed it will resume bitcoin withdraws after orders from the People's Bank of China resulted in a four-month pause.

But on Thursday bitcoin reversed course after the U.S. Senate bill was brought into the spotlight, Bloomberg also reported. The bill was introduced in May and includes a section which will single out digital currencies and prepaid access devices.

The decline in bitcoin can be traced back to an outage on Monday caused by heavy trading volume at a digital currency exchange called CoinBase. Also, another exchange called Bitfinex said it was under a denial of service attack on Tuesday which merely added to the exchange's reputation issues after hackers stole $65 million worth of bitcoins last year.

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