Yahoo Finance Bitcoin price falls below $10,000 as dramatic sell-off enters second day
The price of Bitcoin has fallen below $10,000 (£7,300) on some online exchanges, cutting its value in half since its peak just a month ago.
The digital currency was trading as low as $9,969 overnight on the popular Coinbase exchange as its value fell for a second straight day.
Although the price recovered slightly on Wednesday morning it has still collapsed dramatically since mid December, when it was trading at almost $20,000.
Fears of governments cracking down on digital currencies, combined with a wave of panic selling, have led many of them to drop heavily in the last few days. Bitcoin has fallen 25pc in three days while others including Ethereum and Ripple have also suffered heavily.
Authorities in China, South Korea and Germany have all indicated they are preparing crackdowns on digital currencies in the coming days. While Bitcoin's price has surged in the last year, many investors and financial regulators have continued to warn about its risk.
Potential action in South Korea in particular has spooked investors, since the country is a hub of cryptocurrency trading.
On Tuesday night, fears were compounded when the anonymously-run online exchange BitConnect said it would shut down, saying that a string of regulatory warnings and cyber attacks had forced it to stop operating.
BitConnect allowed users to exchange Bitcoin for its own cryptocurrency, BCC, and claimed they could earn 40pc interest a month, was accused by many of being a Ponzi scheme. The value of BCC fell 95pc overnight, leaving investors who had thrown money into the alternative currency panicking.
These are actual digital gravestones of Bitconnect bagholders having their savings evaporate before their eyes.
The bitconnect subreddit is a cemetery. R.I.P. ��
There will be more in many different subreddits. pic.twitter.com/l9yfuZq9q8— Francis Pouliot (@francispouliot_) January 17, 2018
BitConnect had been warned by financial regulators in Texas and North Carolina about issuing its own cryptocurrency.
Some investors now fear the wave of momentum that led Bitcoin's price to shoot up last year is reversing and could continue if owners take the recent drop as a sign they should cash out.
Bitcoin's peak in January coincided with the launch of Bitcoin futures contracts, a moment that was seen as the digital currency entering the mainstream. The first month-long contracts are due to expire on Wednesday, with investors nursing heavy losses.
