Crypto Downward Spiral Continues, Bitcoin Down 43% since Jan 1

The bloodbath in cryptocurrencies continued Thursday after a new raft of negative news.

Cryptocurrencies have been battered by a fresh outbreak of negative news, with all major coins continuing their downward spiral on Thursday, a day after Google announced a ban on ads related to ICOs (initial coin offerings) and digital currencies.

The leader of the crypto pack, Bitcoin, shed 13.25% over the past 24 hours and was trading at $7,989 as of 5:00 am UTC. Year-to-date, the cryptocurrency has lost 43% from its January 1 value of $14,112, data from CoinMarketCap showed.

Other cryptocurrencies have fared even worse than Bitcoin. At the time of writing, Ethereum was down 14.54% to $593.61, while Ripple had shrunk by 16.58% to $0.6604. Losses for the rest of the top 10 cryptocurrencies ranged between 11% and 26%.

Washington wants more oversight

Google’s announcement was not the only bad news to hit the cryptocurrency industry this week.  Capitol Hill’s Subcommittee on Capital Market conducted a hearing called “Examining Cryptocurrencies and ICO Markets,” with some legislators proposing stricter rules.

During the hearing, Democrat Brad Sherman described virtual currencies as “a crock” and accused the industry of assisting terrorists and criminals in moving money across borders. The tension heightened further when subcommittee chairman, Republican Bill Huizenga, signaled his intention to push for broader oversight of the industry.

He said:

“This panel, this Congress is not going to sit by idly with a lack of protection for investors.”

Google banning crypto-related ads

Also on Wednesday, Google said it would update its financial services policy and would no longer allow ads for “cryptocurrencies and related content.”

Taking effect in June this year, the new policy bans advertisements pushing “binary options and synonymous products and cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice).”

Facebook initiates ban

Facebook was the first online platform to ban ICO- and crypto-related advertisements. In January this year, the social media giant said the ban was meant to emphasize its core principles, which revolve around providing users with a safe experience and protecting them from unscrupulous or deceptive ads.

The company said:

“We’ve created a new policy that prohibits ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, and cryptocurrency.”

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