Bitcoin Down 5% in Last 24 Hours, Deutsche Bank Issues Warning

Image via Deutsche Bank/Flickr CC

Bitcoin prices continue their downward descent to start the week, as prices for cryptocurrency has fallen over 5%. Bitcoin’s price is suffering headwinds, as several major news announcements have pushed the currency below the $11,000 mark.

Japan just announced on Monday that regulators will crackdown on cryptocurrency exchanges.

Coincheck, a Tokyo-based exchange, was victim of the largest virtual heist since 2014 last week after an announcement that hackers stole $534 million on the NEK blockchain. Authorities have ordered the exchange to increases security and present measures that will take place to block further incidents from occurring.

Coincheck has announced that they will refund their customers and will use their own money to pay back $426 million. The breach is the largest in cryptocurrency history.

“All things considered, cryptocurrency is still a nascent field for which lawmakers and the judiciary have yet to set national governing standards,” said FBAR attorney Andrew Gordon.

Bitcoin was not stolen in the hack, but the theft of cryptocurrency has sent a wave of despair to investors. Trading patterns have shifted, as investors are skeptical of potential regulations in the market. News of Tether’s solvency issues may have also weighed down on the currency.

The press didn’t help the bitcoin market. Reports suggest that if Tether turns out to have engaged in fraudulent activity, the impact may send bitcoin prices tumbling 80%. Tether offered a proxy that is used instead of the U.S. dollar by exchanges.

Investors fear that the cryptocurrency could be in a caution state if the price falls below the $10,000 threshold. A rally is only expected if bitcoin prices move toward the $11,700 mark. Experts forecast that a rally would push bitcoin to trade at $13,000 or more.

Deutsche Bank issued a further warning to start the week that impacted the entire cryptocurrency market. The company notes that there is possible price manipulation, high volatility and the potential for data loss and theft in the market.

The lender went as far as saying cryptocurrency is only an investment for the speculative trader, and there is a “realistic risk of total loss.” The warning is one of many for cryptocurrencies, which have faced backlash from the Bank of Spain and investor Warren Buffett.

Buffett claims that cryptocurrency will fall, but he has been reluctant to say when such a fall will happen.

The Bank of Spain’s Governor warned that cryptocurrencies, as an asset, have enormous risks involved with them. Austria has said that the market is like going to the casino because of the volatility being seen in recent months.

Asian regulators, increasing their stance against cryptocurrencies, also have investors worried as regulators are cracking down on exchanges. In the past, bitcoin’s prices have fallen by as much as 20% in a day, making it a very high-risk asset for investors.

Lawmakers claim that regulation in the industry will protect investors against abuse and crime that make the cryptocurrency a very risky asset. Deutsche Bank does claim that blockchains have a future in the way that the world performs transactions, with the potential to revolutionize many industries.