Bitcoin bubble deflates again as investors baulk

Bitcoin plunged towards US$8,000 (£5,700) yesterday as the bubble that had inflated the cryptocurrency’s price continued its deflation.

The cryptocurrency was trading 7 per cent lower at $8,486 – a dramatic fall from its December highs of nearly $20,000.

Spreadex analyst Connor Campbell described the decline as a “horror show”.

He pointed to reports the US Commodity Futures Trading Commission was investigating whether market manipulation was at play in the cryptocurrency’s rise.

Along with South Korea, regulators in China, Russia and India have stated concern about Bitcoin.