Bitcoin fell roughly 7 percent Monday, below $8,000 following weeks of regulatory uncertainty and advertising crackdowns by tech companies.
The cryptocurrency was trading near $7,895 as of 1:48 p.m. ET Monday, more than $600 lower than a day earlier, according to data from Coinbase. It’s down more than 42 percent year-to-date after starting this year above $13,000.
Twitter announced Monday it would ban advertising for cryptocurrencies, following similar bans by Google and Facebook to crack down on fraud in initial coin offerings.
“Today’s news on Twitter’s ban is likely a significant contributor to the steep sell-off,” said Timothy Tam, co-founder of crypto-market intelligence platform CoinFi. “As new retail investors enter cryptocurrency, a large portion of them are trading on raw emotion.”
Bitcoin’s one-day performance
Global regulators have also taken note of potential risks in initial coin offerings, or digital coins released through fundraisers known as token sales.
The U.S. Securities and Exchange Commission stepped up efforts to police the fundraising process through scores of subpoenas reported earlier in March.
Regulatory news has been a main driver of price moves in 2018.
Bitcoin has dropped roughly 60 percent from its high near $20,000 in December, according to Coinbase. It began falling below the key $10,000 level three weeks ago, after the Securities and Exchange Commission said it will require digital asset exchanges to register with the agency.
Prices recovered to the $9,000 range last week following a G-20 meeting where central bankers and finance meetings had “productive” discussions on cryptocurrency.
Italy’s central bank leader told reporters after the meeting that cryptocurrencies pose risks but should not be completely banned, according to Reuters.
Other cryptocurrencies, or “alt coins,” were trading lower Monday. Bitcoin cash was down 8 percent, ethereum fell 9 percent, while litecoin was 10 percent lower, according to Coinbase. Ripple fell more than 8 percent.