Newsflash: Bitcoin Price Dives Below $7,900 after New York Opens Probe into Exchanges

Bitcoin price
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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.

bitcoin price
BTC Price Chart

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 a real-time Bitcoin price chart, click here.

Featured image from Shutterstock.

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Josiah is a full-time journalist at CCN. A former ancient and medieval literature teacher, he has been reporting on cryptocurrency since 2014. He lives in rural North Carolina with his wife and children. Follow him on Twitter @Y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.