Moneycontrol
Feb 07, 2018 11:47 AM IST | Source: Moneycontrol.com

Bitcoin bounces back from Tuesday's lows of USD 6,000

The largest cryptocurrency in the world opened at around USD 7,054 and had hit an intra-day high of USD 7,850.70 according to coinmarketcap.com.

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Photo illustration of Bitcoins
Photo illustration of Bitcoins

After hitting lows of less than USD 6,000 on Tuesday on some exchanges, Bitcoin staged a bounce back today and was trading at around USD 7,274 on Wednesday morning on coinmarketcap.com.

At current levels, the world's most famous cryptocurrency has lost more than USD 11,000 after it had hit dizzying heights of more than USD 19,000 in December. The digital currency has failed to hold the levels of USD 17,000 which it was trading at a month ago.

Bitcoin witnessed a stellar rise in value in 2017 after it rose 20 times when it opened at around USD 970 and rose to USD 19,356 mid December. However, the digital currency hit roadblock when experts termed bitcoin mania as one of the biggest bubble ever. Central bankers across the world have in the past denied accepting it as a formal currency.

Some influential voices even termed cryptocurrencies as a Ponzi scheme with Augustin Carstens, General Manager, Bank for International Settlements (BIS) terming it as "combination of a bubble, a Ponzi scheme and an environmental disaster."

Cryptocurrencies were dealt with another severe blow globally when some of the largest banks across the world including Britain’s Lloyds Banking Group, US giants JPMorgan Chase percent Co, Citigroup and Bank of America stated they will not allow customers to purchase cryptocurrencies using their credit cards.

Recently, Finance Minister Arun Jaitley termed cryptocurrencies illegal in his Budget speech.

Jaitley in his speech said, “The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system."
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