Bitcoin stands at $9,807.56 to record its lowest
value since December 1 and a plunge of almost 50 percent since reaching a
record high on December 18, according to data compiled by Bloomberg.
“There
was clearly a significant speculative component to the rally late last
year and the drop will be very discouraging to those that previously
thought there was easy money to be made,” Craig Erlam, a senior market
analyst at Oanda trading group, said of bitcoin’s drop below $10,000.
Bitcoin
is down from record highs approaching $20,000 in the week before
Christmas, having rocketed 25-fold last year, before being hit by
concerns about a bubble and worries about crackdowns on trading it.
“The
panic-selling seen across all the major cryptocurrencies could be
attributed to a possible regulatory clampdown in South Korea with
authorities threatening to place an outright ban on cryptocurrency
trading,” noted David Cheetham, a chief market analyst at XTB.
“Having
said that, this narrative has been around for many weeks now and isn’t
really new but it has once more raised the spectre of tighter regulation
on this market.”
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