The global cryptocurrency market suffered a massive $100 billion loss in the past 24 hours alone, as tighter regulations are discussed by authorities.
As of 6:30 a.m. GMT on Friday, the total market value of all digital currencies in circulation was $405 billion, representing a decline of $112.6 billion in value compared to Thursday.
Investors also worry that the prices of Bitcoin as well as other cryptocurrencies were manipulated by cryptocurrency exchange Bitfinex.
Earlier this week, Bloomberg reported that in December, the US Commodity Futures and Trading Commission subpoenaed the exchange and Tether cryptocurrency company. According to the report, both the company and the exchange are run by the same executives.
The troubles don’t even end there. A major sell-off of cryptocurrencies is being observed in the last few days, causing the price of Bitcoin to decline to as much $8,500. Other major crypto-players such as Ripple and Ethereum fell 32% and 22% on Friday, respectively.
On Thursday, Indian finance minister Arun Jaitley said the country would not deem crypto-assets as legal tender adding that it would take “all measures to eliminate illegal activities”, signaling tighter regulation. However, some good news came from South Korea, with the country’s finance minister Kim Dong-Yeon saying that the government would drop its plans to ban trading of cryptocurrencies.
At the time of writing, Bitcoin prices are fluctuating around the $8,000 range, and many believe it could drop to the $5,000 - $6,000 range if market continues to lose confidence. The current prices are in stark comparison to December figures, when Bitcoin touched a record high of $20,000.