Bitcoin price dove below $7,900 on Tuesday after the New York Attorney General's office announced that it had opened an inquiry into the cryptocurrency exchange industry.
The flagship cryptocurrency had traded above $8,000 for most of the day, with many analysts arguing it would embark on a bull run now that tax season is coming to a close in the US.
However, on Tuesday afternoon the Bitcoin price took an unexpected turn, plunging from $8,090 to $7,855 in a matter of minutes on Bitfinex. At present, Bitcoin is trading at $7,877, which translates into a $134.2 billion market cap.
The drop followed the announcement that the New York Attorney General's office had opened an inquiry into the operations of 13 cryptocurrency exchanges -- some located in New York, some not. While it is unclear if the probe will result in any enforcement action, Attorney General Eric Schneiderman has a reputation as an activist official and could seek to make a statement.
For those of you outside of the US, or anyone who doesn't follow this kinda stuff, Schneiderman is what you might call an activist AG (or at least active). Being in his crosshairs isn't a great thing.
— Palley (@stephendpalley) April 17, 2018
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