The value of bitcoin has fallen sharply since reaching record heights last month, briefly falling below $90 000 on Tuesday compared with above $126 000 at the start of October.
The value of bitcoin has fallen sharply since reaching record heights last month, briefly falling below $90 000 on Tuesday compared with above $126 000 at the start of October.
Below AFP explains why investors are turning away from the volatile asset.
What has caused the latest price drop?
Prior to the recent slump, bitcoin broke a series of record highs in the wake of Donald Trump’s return to the White House. The US president came out strongly in favour of cryptocurrencies before his re-election and has continued to do so.
Bitcoin first surpassed $100 000 in May before reaching its latest record of around $126,251 last month.
Support came also from expectations of an interest-rate cut from the Federal Reserve following weak US jobs data, which weighed on the dollar.
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