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With Indian officials declaring an all out war on cryptocurrencies, Bitcoin’s price falls to just above key technical level

On Feb. 1, officials for the government of India announced that they were going to ‘take all measures’ to eliminate the use of cryptocurrencies within their borders, causing virtual currencies across the spectrum to fall in nearly every market.

And included in this decline was the granddaddy of them all, where the price of Bitcoin has now declined to just above a critical technical level of $9000 per coin.

India’s government became the latest country to declare its opposition to bitcoin payments, saying it would do everything in its power to eliminate the use of cryptocurrencies. 

“The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,” Finance Minister Arun Jaitley told lawmakers in New Delhi on Thursday. However, while blasting bitcoin, the Indian finmin announced that India would embrace blockchain “The government will explore use of blockchain technology proactively for ushering in digital economy.” – Zerohedge

Bitcoin has now fallen over 50% from its all-time highs achieved back on Dec. 17 of last year.  And according to some analysts, the $9000 level is a very important support level that if broken could lead to a much greater fall in price.

Bitcoin dropped Thursday to trade just above $9,000, a critical level of support that many analysts are watching. 

The digital currency fell 10 percent to $9,099 as of 11:32 a.m. ET, according to CoinDesk’s bitcoin price index, which tracks prices from four major cryptocurrency exchanges. CME’s bitcoin futures contract expiring in February fell more than 10 percent to below $9,000. 

The decline followed comments from India’s minister of finance, Arun Jaitley, that raised concerns about increased regulation on cryptocurrencies in the country. 

The New York Times also reported Wednesday that an increasing number of digital currency investors are worried the price of bitcoin and other digital currencies have been inflated by cryptocurrency exchange Bitfinex, which is included in CoinDesk’s price index. – CNBC

Source: thedailyeconomist.com

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