Bitcoin trades below US$10000

That's a far cry from its peak close to $20,000 in December, when the virtual currency had risen almost 2000per cent over the year.

South Korea is considering a new law that would outlaw cryptocurrency exchanges in a bid to quell speculative frenzy and criminal transactions.

On Wednesday, bitcoin fell as low as US$9,222 on Bitstamp, its lowest price since December 1, as CBOE and CME bitcoin futures tumbled to contract lows.

As digital currency plunges, the company's which are either tagged directly or indirectly through the blockchain and Bitcoin are also dipping into the market.

"The January drop is a recurring theme in cryptocurrencies as people celebrating the Chinese New Year, aka Lunar New Year, exchange their crypto for fiat currency", said Alexander Wallin, chief executive of trading social network SprinkleBit in NY.

Bitcoin's price fell below $10,000 as a dramatic sell-off of all cryptocurrencies entered its second day, amid fears over tighter regulations in Asian markets.

Traders holding cryptocurrencies must decide whether to quit the Bitcoin, according to the analysts. Rival cryptocurrencies Ripple and Ethereum dropped 40% and 26% respectively.

While the drop in Bitcoin's price has made many new crypto investors uneasy, a look at Bitcoin's year-to-date growth put matters into perspective.

Bitcoin is down by more than 12 per cent since yesterday morning to around $10,740.

In fact, January 16, 2018, has been a particularly sad day in the recent history of all cryptocurrencies. With so many new investors coming into the space, the market on cryptocurrency appears to continuously grow at a very fast pace.

The event does portray an outpouring of funds from the cryptocurrency market, however, which may be due to a number of reasons. Last September, Chinese authorities shut domestic exchanges.

So given that it increased nearly fivefold in terms of value in around two and a half months through to mid-December, it's hardly surprising that we're seeing some major volatility on the down-slope.

  • Zachary Reyes