Bitcoin's recent price drop did not occur in isolation, and nearly every major cryptocurrency has experienced large value drops during the week. The big unknown, however, is whether the recent wild uptick in value is a blip that is now being corrected in the market, or if Bitcoin still has new heights to reach.
"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".
The world's most popular virtual currency, bitcoin has recently had its rate going through the roof, soaring more than 1,700 percent previous year alone.
The country has seen a huge bitcoin craze, with young and old betting on the crypto currency to build wealth. The latest comes as reports in South Korea and China suggest the two countries are considering a ban on trading.
Spooked investors are selling their cryptocurrency as value tumbles.
Prices of bitcoin and other digital currencies have skidded after South Korea's top financial policymaker said yesterday that a crackdown on trading of crypto currencies was still possible.
Due to this exponential growth and the constant fluctuations of its price, many analysts and experts have called Bitcoin a Bubble and governments around the world are starting to express their desire to regulate the crypto market.
Cryptocurrency dip buyers have returned after Bitcoin crumbled through key support and hit a low of less than $US10,000 overnight. The value of many cryptocurrencies will recover soon in the upcoming days.
"Rising unemployment, especially among young people, is also being linked with a growing number of people looking at new ways to try and make money", the BBC said.
Speculators across the globe are struggling to determine when or how market watchdogs may rein in an industry that's decentralized and derives much of its value from anonymous ownership.