Bitcoin continued its sharp drop during the past 24 hours, falling more than 7 percent on Wednesday.
The world’s biggest and best-known cryptocurrency is an asset whose value has skyrocketed in the past year. Investors believe that regulators might soon clampdown on the said digital currency, urging a swift downpour in fortunes.
The price of Bitcoin fell to as low as $10,567 on the Luxembourg-based Bitstamp exchange. It was little shy from its lowest point of $10,162, recorded the previous day. During the session, the digital currency went up to as much as $11,794.07.
It was not the only cryptocurrency that experienced a downfall, Ethereum and Ripple also slid sharply this week. This followed reports that South Korea and China are considering banning the trading of digital currencies in their respective countries. It fueled worries that there could be a wider regulatory crackdown.
“Cryptocurrencies could be capped in the current quarter ahead of G20 meeting in March, where policymakers could discuss tighter regulations,” stated chief analyst Shuhei Fujise.
Bitcoin futures that were maturing on Wednesday on the Cboe Global Markets Inc.’s Cboe Futures Exchange stood at $10,740. There were 1,586 contracts traded after it opened at $10,850.
There were 2,895 contracts with open interest. The Cboe 14 March 2018 contract was quoted at $11,130.
Tuesday Cryptocurrency Session
Bitcoin recorded its biggest decline in four months during the Tuesday session where it fell 25 percent. This was far from its peak where it almost reached $20,000 in December, climbing almost 2000 percent over the year.
Reports regarding South Korea’s possible ban of the cryptocurrency trade resulted to the decline that took place on Tuesday. The country’s finance minister stated that the ban was still an option. He also said that the government has plans to clamp down on the “irrational” cryptocurrency investment craze.
Separately, a Chinese central banker suggested that authorities should ban centralized trading of the digital currencies. He then added that individuals and businesses that provide related services should also be banned.
“Bitcoin is deciding whether this is the moment to crash and burn,” said head strategist Steven Englander. “My conjecture is that cryptocurrency holders are trying to decide whether to abandon Bitcoin because its limitations mean it will be superseded by better products or bet that it can thrive despite them.”