Bitcoin prices saw another day of heavy losses on Tuesday as the value of the digital currency continued to decline amid renewed fears of US monetary policy tightening as well as a crackdown on miners in China.
In late afternoon trading in London, Bitcoin was down 10.4% in the last 24 hours at US$32,706, its lowest level in just over two weeks and giving it a market cap of around US$612bn.
The cryptocurrency has been under pressure following a sharp correction last month which sparked a selloff in the market as many crypto holders were spooked by the prospect of increased regulatory scrutiny on digital currencies as well as growing concerns over the environmental impact of the Bitcoin mining process, which consumes large amounts of electricity.
Other major cryptos were also on the slide, with Ethereum dropping 11.8% to US$2,463 while meme-inspired Dogecoin slumped 12.5% to US$0.32.
MicroStrategy plans Bitcoin buy-in
While Bitcoins ongoing fall may leave some crypto traders miserable, business intelligence firm MicroStrategy Inc (NASDAQ:MSTR) appears to be planning to ‘buy the dip’.
On Monday, the company said it is planning to raise US$400mln through the issue of loan notes in order to purchase more Bitcoin, a move that has been greeted with scepticism by some analysts who are concerned the firm may be establishing itself as nothing more than a proxy for the digital currency.
Investors seemed similarly downbeat, with the company’s shares down 4.4% at US$449.15 in mid-morning trading in New York.