Bitcoin’s value has dipped below $8,000 for the first time in 11 weeks in the midst of a broader cryptocurrency sell-off.
The volatile digital asset fell as low as $7,882 on Friday, according to Coinbase data. The drop marks the first time it has fallen below the $8,000 level since November 24, according to CoinDesk, which tracks prices from digital currency exchanges Bitstamp, Coinbase, itBit and Bitfinex. The price of bitcoin lifted to $8,593.15 later Friday morning.
Multiple virtual currencies have dropped significantly as regulators voiced concerns about them and worries grew over suggestions that the price of bitcoin has been propped up by popular exchange Bitfinex.
On Wednesday, Indian Finance Minister Arun Jaitley warned against criminal activity associated with cryptocurrencies, and said that India would “eliminate” the use of cryptocurrencies in “illegitimate activities.”
A number of critics have railed against cryptocurrencies like bitcoin, citing extreme price swings and worries of dubious activities associated with the crypto world, such as money laundering.
Notably, J. P. Morgan Chief Executive Jamie Dimon called the world’s largest cryptocurrency, bitcoin, a “fraud,” and said that he thought it would eventually “blow up.”
Meanwhile, Berkshire Hathaway Chief Executive Warren Buffett told CNBC last month that cryptocurrencies were likely to “come to a bad ending.”
Cryptocurrencies are decentralized, virtual currencies that are not backed by governments. They are underpinned by distributed ledger networks called blockchains, which maintain a continuously growing log of transactions across a network of computers.