Bitcoin dropped below $10,000 on Wednesday, half its peak value, as investors fear that regulators could clamp down on the volatile cryptocurrency that sky-rocketed last year.
Bitcoin price fell to as low as $9,500 on the Luxembourg-based Bitstamp exchange, the lowest since Dec. 1.
Bitcoin had touched a peak of almost $20,000 in December - and indeed crossed over that threshold on some exchanges - but has since been roiled by several large selloffs.
Other cryptocurrencies plunged as well. Ethereum and Ripple were both down heavily after reports South Korea and China could ban cryptocurrency trading, sparking worries of a wider regulatory crackdown.
Analysts said on Wednesday that bitcoin could halve again in value amid the current rout, adding that a possible fall to between the $5,605 and $5,673 area “looks very likely to be very speedy”.
With South Korea, Japan and China all making noises about a regulatory swoop, and officials in France and the United States vowing to investigate cryptocurrencies, there are concerns that global coordination on how to regulate them will accelerate.
Officials are expected to debate the rise of bitcoin at the upcoming G20 summit in Argentina in March.
