Bitcoin prices today plunged to $7,500 per coin on Wednesday afternoon. The world's largest cryptocurrency fell to its lowest levels in five weeks as fear of increased regulation ticked into trader sentiment.
Bitcoin prices have declined by more than 20% since hitting a near-term high on May 6. Nearly every single cryptocurrency in the top 100 by market capitalization was in the red Wednesday.
Of course, the recent downturn hasn't stopped Bitcoin's most vocal bulls from setting lofty targets for the year ahead. Fundstrat co-founder Tom Lee stuck with his price target of $25,000. In an appearance on CNBC Tuesday, Lee listed three factors that would push Bitcoin prices higher. Lee noted the cost of producing Bitcoin, historical trading patterns, and an increased interest from institutional investors.
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Here is a recap of the top five cryptocurrencies by market cap as of 3:30 p.m. EDT:
Cryptocurrency
Market Cap
Price
Change (24h)
Bitcoin (BTC)
$128,804,286,733
$7,554.31
-8.14%
Ethereum (ETH)
$58,651,294,621
$588.75
-12.47%
Ripple (XRP)
$23,450,571,575
$0.60
-10.41%
Bitcoin Cash (BCH)
$17,411,789,382
$1,015.64
-13.28%
EOS
$9,607,274,812
$10.98
-14.93%
Now here's a closer look at today's Money Morning cryptocurrency insight, the most important cryptocurrency updates you need to know...
Money Morning Insight of the Day
Bitcoin prices fell back to the $7,500 level over the last 24 hours, as markets continued a broader selloff in the cryptocurrency sector.
That's creating a buying opportunity for savvy investors.
Nearly every cryptocurrency fell today thanks to a selloff fueled by regulatory concerns. Recent developments out of China suggest the nation's regulators may increase their oversite of the crypto market and continue to crack down on the use of cryptocurrencies. This week, the country's financial cybercrime cell - the National Internet Financial Risk Analysis Technology Platform (IFCERT) - issued a report stating that 421 digital currencies were scams.
Meanwhile, in India, the nation's government is considering a new tax on cryptocurrencies. According to a report from Bloomberg, the nation's cryptocurrency tax proposal would categorize cryptocurrencies as taxable goods. The country would slap an 18% crypto tax on any activities tied to the supply, transfer, storage, accounting, and other service activities.
Markets are also still digesting news that Bitfinex had requested tax data of investors to share with government agencies. Investors withdrew large amounts of money from the exchange in recent days due to fears that government intervention would accelerate.
Goldman Sachs Group (NYSE: GS) is ramping up its exposure in the cryptocurrency space. In addition to launching its own Bitcoin desk, the firm has backed a new venture called Circle. The platform is designed to attract new investors to the cryptocurrency markets and have a weighted portfolio of seven different digital currencies. Investors can put as little as $1 into the cryptocurrency markets.
Kidnappers are now making ransom demands in Bitcoin. In South Africa this week, kidnappers abducted a 13-year-old boy in the eastern province of Mpumalanga. The criminals have demanded that the boy's family pay a ransom of 15 Bitcoins by May 27.
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