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Bitcoin wallows near 5-month low as regulation worry weigh

Published 09/30/2014, 07:58 AM
Bitcoin struggles as regulation concerns weigh
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Investing.com - Bitcoin prices traded near the lowest level in more than five months on Tuesday, as concerns about possible regulation of the virtual currency continued to weigh.

Bitcoin (BTC/USD) tacked on $1.10 on Slovenia-based BitStamp to trade at $377.00 during U.S. morning hours. BitStamp prices fell to $366.71 on Monday, a level not seen since April 11.

Bitcoin prices were likely to find support at $339.79, the low from April 11, and resistance at $403.99, the high from September 28.

The price of a bitcoin on Bulgaria-based BTC-e added $3.10 to trade at $374.73, while prices on Singapore-based itBit advanced $1.29 to trade at $375.46.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency inched up 1.04% to trade at $378.62.

Market players remain concerned about possible regulation of the virtual currency among other adverse events in the industry.

New York's Department of Financial Services proposed a BitLicense on July 17. As per the proposal, firms would have to obtain a license to engage in the virtual currency business.

Some market analysts have expressed concerns over the proposal, saying increased regulation would pressurize the Bitcoin industry.

Meanwhile, euro-denominated Bitcoin prices (BTC/EUR) rose €7.52 to trade at €298.90 on U.S.-based Kraken Exchange.

Elsewhere, yuan-denominated Bitcoin prices climbed 13.16 yuan to trade at 2,340.01 yuan on Beijing-based OKCoin, while prices on Shanghai-based BTC China rallied 26.28 yuan to trade at 2,340.08.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

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