Bitcoin prices fell by the most in a month after the Commodity Futures Trading Commission's Lab ruled that virtual currency used in initial coin offerings (ICOs) are classified as securities and would be subject to regulatory oversight. The bitcoin market responded with coins falling 8.4% to a low of $US5,109.
It is likely that Bitcoin will quickly recover if last month's performance is anything to go by.
Bitcoin prices reacted similarly last month after one of the largest Chinese exchanges announced it would ban ICOs, in a national crackdown on virtual currencies. The announcement did little damage, over the medium term, with bitcoin hitting a record high of $US5,866 just a few weeks later.
Tightening regulation in the US, China and Korea isn't slowing down sales in ICOs. Total funds raised by ICOs exceeded total funds raised via traditional equity financing for the first time in the second quarter this year, with the trend continuing in the third quarter.
