Other popular cryptocurrencies ethereum and ripple also posted double-digit losses. It’s unclear why bitcoin fell.
Cryptocurrency is a murky market with frequent swings. “Volatility is quite common in the cryptocurrency world,” said Mati Greenspan, a Tel Aviv-based analyst at investment firm eToro.
The plunge follows a Bloomberg report on Monday that Chinese officials were stepping-up measures to limit cryptocurrency trading, which is already banned on exchanges. Investors in South Korea and Japan, the two largest cryptocurrency trading nations, were sitting on the sidelines Tuesday waiting for the regulatory uncertainty to clear before placing further bets, said Greenspan.
He believes the light trading volume caused bitcoin’s price to plunge. Bitcoin approached a record $20,000 in mid-December as it launched on futures exchanges in the United States. Read more from money.cnn.com…
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