Bitcoin extends plunge to trade below $12000

Bitcoin plunged by a quarter to below $12,000 on Friday as investors dumped the cryptocurrency in manic trading after its blistering ascent to a peak close to $20,000 prompted warnings by experts of a bubble. (NYSE:GS) is setting up a trading desk to make markets in digital currencies such as bitcoin, according to people with knowledge of the strategy. If it were left up to the New York Stock Exchange, however, a few Bitcoin ETFs would be introduced in the near future.

The bitcoin's rapid gains this year - its price has soared about 19 times - have spurred caution and alarm among some policymakers.

"After its parabolic-like rally, a crash was imminent and so it has proved", said Fawad Razaqzada, market analyst at Forex.com in London. More specifically, they are linked to Bitcoin futures contracts, which have become somewhat popular with mainstream investors over the past few days. "A lot of traders have been waiting for this large correction". Hopefully that what comes out of this: some more regulatory oversight.

Recently, markets regulator Sebi (Securities and Exchange Board of India) will come down heavily on illicit "initial coin offers" seeking public investments with promise of high returns from bitcoins and other virtual currencies, amid a mushrooming of such schemes in the absence of any regulatory regime.

It is evident Bitcoin has received a healthy boost throughout 2017. South Korea's Financial Supervisory Service said on Tuesday it does not consider bitcoin and other cryptocurrencies to be currencies of any kind.

Coinbase, a US company that runs one of the biggest exchanges and provides digital "wallets" for storing bitcoins, said on Wednesday it would investigate accusations of insider trading, following a sharp increase in the price of a bitcoin spin-off hours before it announced support for it.

The weekly decliner is the biggest in nearly 3 years. Ripple, the third-biggest, has more than quadrupled in price since Monday. The Fund seeks to achieve its investment objective by investing in USA exchange-traded bitcoin-linked derivative instruments and pooled investment vehicles and exchange-traded products that provide exposure to bitcoin. Oanda does not handle trading in bitcoin. The cryptocurrency was down more than 5 per cent on the day, the agency said.

The two ETF funds will closely follow all the movements in the Bitcoin futures markets listed by CBOE and CME.

Bitcoin is known to go through wild swings.

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