"It's mainly been regulatory issues which are haunting (bitcoin), with news around South Korea's further crackdown on trading the driver today", said Think Markets chief strategist Naeem Aslam, who holds what he described as "substantial" amounts of bitcoin, Ethereum and Ripple. Reports quoting the survey said a 25-year-old, who had invested Rs 25 lakh in bitcoins, has seen the valuations of the currency he held multiplying to Rs 760 crore.
At the North American Bitcoin Conference in Miami, investors and executives were unfazed by rumours that governments will soon ban the buying and selling of virtual coins.
The price of bitcoin, the world's biggest and best known cryptocurrency, fell to as low as US$10,0000 on the Luxembourg-based Bitstamp exchange, the lowest since December 1.
Amid concerns over a bubble, the government last month banned the opening of new virtual accounts for cryptocurrency investors and required virtual currency traders to change their virtual accounts to real-name ones.
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. Bitcoin trades at roughly a 30 percent premium in South Korea compared with other countries because of huge demand and monetary restrictions in that country, analysts said.
On Wednesday morning Bitcoin fell and reached $9,199.59. On Tuesday South Korea's finance minister said that banning trading in digital currencies was "a live option" and China's central bank is reportedly pushing to ban cryptocurrencies. "They are not able to handle very large amounts of transactions, making them impractical as a widespread means of exchange". For the second day in a row, every major cryptocurrency has suffered double-digit declines over the previous 24 hours.
On 18 January 2017, Bitcoin was trading at $901. "We expect the volatility to continue throughout 2018 but fundamentally believe that bitcoin is still in a bull market", said Christopher Keshian, co-founder of $APEX Token Fund. As of 12:13 p.m. ET, bitcoin was trading more than 13 percent lower at $11,759.73 a coin, according to CoinDesk.