The cryptocurrency selloff got a reboot on Monday, as bitcoin pushed below $8,000 on news a major U.K. bank had banned purchases of digital currencies via its credit cards.
Bitcoin BTCUSD, -14.29% traded as low as $6,200, tumble of about 69% from its December peak, leaving it at levels not seen since late November.
Late Monday, the total market value of bitcoin stood at around $292 billion, according to CoinMarketCap.
Meanwhile, Ether coins on the Ethereum blockchain lost a quarter of their value to $618, trading at levels not seen since the start of the year. Ripple coins shed 22% to change hands at 62 cents, and Litecoin dropped 23% to around $115, according to CoinMarketCap.
Fears of tighter regulation on trading of cryptocurrencies around the world have helped drive the selloff, with fresh concerns cropping up on Monday via news from U.K. banking giant Lloyds Banking Group LYG, -4.31% LLOY, -0.93% .
“Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies,” said a Lloyds Banking Group spokesperson.
“It’s a case of protecting our credit card customers from the risks associated with the price volatility of cryptocurrencies,” said the spokesperson, in emailed comments.
The move comes after several bank and card issuers, including Bank of America Corp. BAC, -5.29% , said they would be reviewing their policies around the buying of crypto assets using credit cards. Capital One Financial Corp. COF, -4.50% banned customers from using credit cards to purchase bitcoin or coins on the Ethereum blockchain, The Wall Street Journal has reported.
Included in last week’s regulatory jabs at bitcoin and its rivals, was news that Facebook Inc. FB, -4.74% will no longer allow cryptocurrency ads to run, and India’s finance minister, who said cryptocurrencies aren’t viewed by officials as a form of legal tender.
February bitcoin futures on the Cboe Global Markets Inc. XBTG8, -12.83% tumbled 17%, or $1,475, to settle at $7,055, while comparable futures on the CME Group Inc. BTCG8, -14.46% lost $1,325, or 15%, to end at $7,260.