After scaling to a new high in mid-December, bitcoin since then is reversing all previous gains on the back of stepped up crackdown against the digital currency worldwide. The concerns are largely around investor losses.
On Friday again, the token declined in value and was trading at $13,019 at 8:24 am Hong Kong time. With it the topmost virtual currency by market cap is set to hit the worst week in performance since January 2015 with a slump of 22% posted this week.
Also, in just 4-days time, the cryptocurrency world has lost more than US$ 150 billion in market cap mainly on account of worldwide clamp down on digital currencies.
As per the data by CoinMarketCap, the market cap of cryptocurrencies which reached a high of US$ 835.5 billion on January 7, declined to US$ 677 billion on January 11 thus making a loss of nearly one-fifth in valuation or US$ 158 billion in a span of just 4 days.
In China, the bitcoin mining process is set to become expensive as the government clamps down on the industry.
Also, this week South Korean government proposed to ban cryptocurrency exchanges.