Bitcoin briefly falls below $8,000 after Google says it will ban cryptocurrency ads

Bitcoin prices briefly fell below $8,000 on Wednesday following news that Google, the world’s largest online ad provider, plans to ban cryptocurrency advertising.

Facebook, the second largest online ad provider, took similar action in January.

Tech giant Google announced an update Wednesday to its financial services policy that will restrict advertising for “cryptocurrencies and related content” starting in June.

Bitcoin fell 12 percent in late January after Facebook announced it would ban ads on “binary options, initial coin offerings and cryptocurrency.” The social media giant said it would prohibit ads for financial products and services “that are frequently associated with misleading or deceptive promotional practices.”

The symbols of Bitcoin and Ethereum cryptocurrencies sit displayed on a screen during the Crypto Investor Show.

Mary Turner | Bloomberg | Getty Images
The symbols of Bitcoin and Ethereum cryptocurrencies sit displayed on a screen during the Crypto Investor Show.

A report of a Commodity Futures Trading Commission subpoena on major cryptocurrency exchange Bitfinex and an Securities and Exchange Commission emergency asset freeze on an initial coin offering added to negative sentiment that day.

Despite the news Wednesday, Brian Kelly, CEO of BKCM, said the crackdown could be an upside for digital currencies.

“It’s a good thing for the industry, Facebook and Google ads were always a red flag for me,” Kelly said. “It’s not having any impact on price.”

Kelly attributed the downward moves to more global regulatory fears.

“Selling is driven by fear of another China ban, supposedly coming in next 24 hours,” Kelly said. “My view is it will be a nothing burger since China has been banning bitcoin since 2013.” […]

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