Bitcoin’s value plunges as investors take the safe road in countdown to Christmas

Bitcoin went into freefall yesterday, with the cryptocurrency’s price collapsing from the dizzying heights.

The price fell dramatically from a high of nearly $US20,000 (£14,964) earlier this week as steam appeared to be running out of its yearend rally.

The cryptocurrency was trading at $US12,137 yesterday – a fall of 36 per cent in five days. Its price fell by more than £1,500 in the space of 12 hours.

The downward spiral comes after a troubled week for Bitcoin in which a cryptocurrency exchange went bust in South Korea following a cyber attack, knocking its price.

Coinbase, another exchange based in the US, also said it was opening an investigation into sharp price increases.

Neil Wilson, senior market analyst at ETX Capital, said: “Has the bubble finally popped? It’s hard to see the bell tolling just yet. “Large price swings have become so normal that it’s hard to decide. We can easily see this market bounce back in very short order.

“Whilst there have been some hacks, public infighting in the mining community, lots of rumoured forks and regulatory pressure building on some fronts, this is likely to be a simple bout of risk-off selling as investors rebalance.”