LONDON: Bitcoin skidded below $10,000 on Wednesday, halving in value from its peak price, with investors gripped by fears regulators could clamp down on the volatile cryptocurrency that sky-rocketed last year.

The price of bitcoin, the world’s biggest and best known cryptocurrency, fell to as low as $9,500 on the Luxembourg-based Bits­tamp exchange, the lowest since December 1. Bitcoin had touched a peak of almost $20,000 in Dece­mber and even indeed crossed over that threshold on some exchanges but has since been roiled by several large selloffs.

Other cryptocurrencies plunged as well. Ethereum and Ripple were both down heavily after reports South Korea and China could ban cryptocurrency trading, sparking worries of a wider regulatory crackdown.

Analysts at Citi said on Wed­nesday that bitcoin could halve again in value amid the current rout, adding that a possible fall to between the $5,605 and $5,673 area looks very likely to be speedy.

With South Korea, Japan and China all making noises about a regulatory swoop and officials in France and the United States vowing to investigate cryptocurrencies, there are concerns that global coordination regarding their regulation will accelerate.

Officials are expected to debate the rise of bitcoin at the upcoming G20 summit in Argentina in March.

At its lows on Tuesday, bitcoin suffered its biggest daily decline in four months. It was a far cry from its peak close to $20,000 in December, when the virtual currency had risen nearly 2,000 per cent over the year.

Published in Dawn, January 18th, 2018