Bitcoin Price Drops Following News of EU Threat

Bitcoin’s price (BTC/USD) dropped following news of a planned EU clampdown on virtual currencies, which are suspected to be used by terrorist groups like the Islamic State of Iraq and Syria (ISIS), which carried out last week’s deadly Paris attacks.

Bitcoin suddenly dropped by 2.7% to $326 on Bitstamp during the hour after the news broke, but that has been the extent of the losses thus far. While not particularly impressive during volatile times, the drop was a noticeable event during what had been 48 hours of flat trade near $335.

Since falling below $300 last week and recovering, bitcoin has undergone a series of smaller, sudden moves in both directions. But for the most part, it has held steady between $320 and $340- far below the hyped high of $500, but still retaining over 40% of the gains realized in the recent rally.

The recent behavior is thus far more encouraging to traders than last year’s, when bitcoin tumbled hard to end the year following its November peak.

At current levels, bitcoin is higher by about 2% for 2015. It is holding about 10% above its 50-day moving average (MA), which is nearing $300 for the first time this year.

Both bitcoin and litecoin (LTC/USD), which fell to $3.08, hit 3-day lows. The LTC/BTC rate is holding steady near 0.0096.