Bitcoin continues its downfall as Russia and China consider regularization

Bitcoin lost more than $ 2,000 in value, which resulted in the general decline in markets due to the abandonment of investor confidence.

Crypto-currencies continued their sharp fall on Wednesday while bitcoin fell by more than 16%, fears of Russian and Chinese investors about state regulation persist.

The price of the biggest and best-known crypto has fallen by more than $ 2,000 until reaching less than $ 10,000 on the Bitstamp trading platform, for the first time since November.

Bitcoin leads in its fall other currencies such as Ethereum and Ripple while China and Russia could suppress the exchange of cryptocurrencies.

Chinese state media reported that the government was planning to eradicate cryptocurrency in the country following the fall of last year that saw Beijing close Bitcoin trading platforms and ban initial offers .

Russian President Vladimir Putin said on Tuesday that if the Russian central bank currently has sufficient powers, legislative regularization will be mandatory in the future.

Shuhei Fujise, chief analyst at Alt Design, said: "Cryptocurrencies could be capped in the current quarter ahead of the G20 meeting in March, so policymakers can discuss stricter regulation. "

Makoto Sakuma, an analyst for the Tokyo-based NLI Research Institute, said trade volumes had been weak despite volatile market conditions. He said: "I would say that the sharp rise in Bitcoin and all the other currencies we have seen throughout the last year is over. But while the "rally" phase is over, I do not think that Bitcoin is over.

According to data from CoinMarketCap, the third-largest crypto, the Ripple quickly descended from its peak at $ 3.8 on January 4 to reach in just a few days $ 1.08, losing 22.8% in just 24 hours. Meanwhile the Ethereum, the second most popular currency had reached a value of $ 1431 on January 13 but has also fallen to $ 892.

Bitcoin is trading around $ 10,400 on Bitstamp at the time of writing this article.

"It's Bitcoin that decides if it's time to crash," said Steven Englander, strategy manager at New York-based Rafiki Capital. "My guess is that cryptocurrency holders are trying to decide if they give up Bitcoin because its limits mean that it will be replaced by better products or bet that it can thrive in spite of them "