Bitcoin Sinks on Exchange Fears

Bitcoin fell to its lowest level since November amid fears that its price was propped up artificially by one of the world’s largest digital currency exchanges.

The US Commodity Futures Trading Commission, a financial regulator, is understood to be investigating the Bitfinex digital currency exchange.

Bitcoin, the most popular and widely traded of about 1,500 digital currencies, rose to a high of $19,666 in mid-December.

Last night bitcoin was trading at $8,965.54, a fall of 11.7 per cent for the day and 54 per cent since its December peak. Bitcoin fell by 26 per cent in January.

The commission sent subpoenas to Bitfinex and Tether, the digital currency developer, in December, Bloomberg said.

Bitfinex and Tether said: “We routinely receive legal process from regulators conducting investigations. It is our policy not to comment.”

Source: Times UK