BITCOIN has been “crushed” and banks “may have been responsible” for bursting the cryptocurrency bubble after values plummeted in the last week, the chair of the department of economics at Long Island University has claimed.
Panos Mourdoukoutas declared that banks could have been responsible for “making the burst worse than it could have been”.
He explained: “Bitcoin is crushed, losing 38.10 per cent of its value over a seven-day period.
“Ethereum and Ripple are crushed, too, losing 43.23 per cent and 48.14 per cent respectively over the same period.
“Big banks may have something to do with both helping the bubble blow bigger and making the burst worse than it could have been.”
The online currency has had a torrid start to 2018 after it saw its price plunge from an all time high of nearly $20,000 in December 2017 to a low of less than $6,000 on February 6.
However, the cryptocurrency began to show signs of a steady recovery over the last few days with its price climbing to more than $9,000 on Saturday morning, representing a 5 per cent rise in value over 24 hours.
However, any signs of a Bitcoin recovery were quickly quashed as the digital money then saw its price once again drop.
Meanwhile, Japan is also expected to see an increase in regulation following a number of high profile hacking cases.
Takashi Shiono, an economist at Credit Suisse in Tokyo, said: “Regulators in Japan are usually conservative and not first movers.
“The Government wants to facilitate fintech through cryptocurrency and blockchain technology.
“We’ll likely see stronger regulations, but not a ban.”
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