SEVERE WX : Fire Weather Watch View Alerts

Bitcoin's 'many problems' puzzle regulators

Bitcoin is on a rollercoaster ride.The cryptocurrency tumbled as much as 13% Tuesday. Bitcoin briefly fell bel...

Posted: Feb 6, 2018 12:03 PM
Updated: Feb 6, 2018 12:03 PM

Bitcoin is on a rollercoaster ride.

The cryptocurrency tumbled as much as 13% Tuesday. Bitcoin briefly fell below $6,000 for the first time in three months before recovering most of its earlier losses. It has lost nearly two-thirds of its value since it peaked above $19,000 in December.

Other digital currencies, including ethereum, litecoin and ripple, mirrored bitcoin's drop.

Stocks took a beating on Monday. The Dow plunged almost 1,600 points, the biggest point decline in history during a trading day.

"Crypto is just as much a part of this [selloff] as everything else in the world," Mati Greenspan, a Tel Aviv-based analyst at investment firm eToro, wrote in a note to clients Tuesday.

Related: Bitcoin and other cryptocurrencies tank

Bitcoin's volatility comes ahead of a Senate Banking Committee hearing on cryptocurrencies. Securities and Exchange Commission Chairman Jay Clayton and Commodity Futures Trading Commission Chairman J. Christopher Giancarlo are scheduled to testify.

In prepared remarks, Clayton highlighted weaknesses in digital currencies' regulation.

"The currently applicable regulatory framework for cryptocurrency trading was not designed with trading of the type we are witnessing in mind," Clayton said.

The SEC has already stepped up enforcement. Last week, it obtained a court order halting an initial coin offering from what claimed to be the world's first "decentralized bank."

Cryptocurrency investors have also been alarmed by sharpened rhetoric around online currencies.

On Tuesday, Switzerland-based Bank for International Settlements General Manager Agustin Carstens called bitcoin a "combination of a bubble, a Ponzi scheme and an environmental disaster."

Carstens' comments followed scrutiny Monday from Mario Draghi, president of the European Central Bank. Draghi said online currencies were "very risky assets" and that prices were "entirely speculative."

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 302484

Reported Deaths: 6859
CountyConfirmedDeaths
Los Angeles1249923690
Riverside23334533
Orange21517402
San Diego18402415
San Bernardino17414304
Imperial7654127
Fresno762787
Alameda7407146
San Joaquin606567
Kern597989
Santa Clara5678166
Tulare5509148
Sacramento493278
Stanislaus436450
Contra Costa435788
San Francisco414550
Ventura409353
Santa Barbara386829
San Mateo3787111
Marin322730
Kings285539
Monterey234317
Solano198527
Merced179312
Sonoma151914
Placer99311
San Luis Obispo8774
Madera8578
Yolo80228
Santa Cruz5063
Napa4664
Sutter3374
Butte3194
San Benito3112
El Dorado2920
Lassen2690
Shasta1766
Yuba1633
Humboldt1614
Glenn1590
Nevada1591
Mendocino1070
Colusa1030
Lake1011
Tehama981
Calaveras610
Tuolumne600
Del Norte580
Mono491
Amador360
Inyo341
Siskiyou330
Mariposa311
Plumas150
Alpine20
Trinity20
Sierra10
Unassigned00
Chico
Clear
91° wxIcon
Hi: 101° Lo: 68°
Feels Like: 91°
Oroville
Clear
88° wxIcon
Hi: 103° Lo: 68°
Feels Like: 88°
Paradise
Clear
91° wxIcon
Hi: 94° Lo: 68°
Feels Like: 91°
Chester
Clear
75° wxIcon
Hi: 84° Lo: 52°
Feels Like: 75°
Red Bluff
Clear
87° wxIcon
Hi: 103° Lo: 67°
Feels Like: 87°
Willows
Clear
91° wxIcon
Hi: 105° Lo: 62°
Feels Like: 91°
A hot week will transform into an even hotter weekend over northern California as high pressure stays in control of our weather. No rain is in the forecast, but it will cool a bit by late next week.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events