Bitcoin accelerates downtrend: price drops below $ 7,000

The controversial cryptocurrency Bitcoin has continued its decline on Monday, slipping below $ 7,000. In afternoon trading, the price of the oldest and most well-known digital currency on the major Bitstamp trading platform fell to $ 6979. That was about 15 percent less than on Sunday. Other virtual currencies, of which there are now around 1,500, came under some pressure even more.

On Monday Mario Draghi , President of the European Central Bank (ECB), issued a warning: "Digital currencies should be seen as very risky assets," he told the European Parliament in Strasbourg. ECB Banking Supervision examines the risks of digital currencies. However, eurozone banks did not hold any relevant holdings of bitcoins, Draghi said.

Only in mid-December, the Bitcoin had reached a record high of nearly $ 20,000 after a rapid rise in prices since the beginning of 2017. But since then it went more or less steadily downhill. There are many reasons for the slump, especially the increasingly loud demands for regulation of hitherto largely uncontrolled trade. In addition, there are hacking attacks such as the recent large trading center Coincheck in Japan or technical problems such as the duration and costs of Bitcoin transactions.
Another argument in favor of recent losses is the poor sentiment on the international financial markets. More risky investments, which meanwhile also digital currencies are counted, were seized and sold by the worse stock market mood, it was said. This argument is in contrast to previous arguments that digital currencies - based on the precious metal gold - should be considered a new safe haven. There is nothing to see at the moment.
In general, opinions about digital currencies are very different: advocates praise technological progress and value independence from state control. Critics complain that Bitcoin and other cryptocurrencies are not currencies in the classical sense because of the lack of key attributes such as value stability. In addition, the high risk of abuse due to the anonymity of the payment process is complained.