The price of the most popular cryptocurrency by market capitalization dropped on Wednesday, October 18th as some investors feared regulation from the U.S. government.
At one point in the day, the price of bitcoin dropped by around $500, about 9% to a intraday low of $5,109.70. The coin then proceeded to regain some of its lost ground afterward. Today’s low marked the lowest the coin has been in about a week, which could mean a few things for the digital currency.
After going up around 3% lower than the day’s high, the coin is still up around 500% from the beginning of the year.
The fear of regulation by the U.S. Commodity Futures Trading Commission comes after the agency released a report titled “A CFTC Primer on Virtual Currencies.” The report stated that bitcoin will have to fall under the commodities section of regulations. The report stated specifically that when the coin is used “in a derivatives contract, or if there is fraud or manipulation involving a virtual currency traded in interstate commerce.”
Some regulatory bodies have also stated that they may be adding bitcoin derivatives trading products by the end of next year. One of these bodies is the Chicago Board Options Exchange, who has made strong implications that they would like to enter in the market in the coming months.
The drop in price seemed to affect other currencies as well including Ethereum, which dropped around 7%. Towards the end of the day, the coin was only trading at 4% lower, at a price of $303.
After Bitcoin hit a record high last Friday of $5,856, some are wondering if that is the end for bitcoins bullish rise to fame, or maybe it is just the beginning.