On Monday, bitcoin slipped more than 5% to $39,558, its lowest level since August 5.
Bitcoin’s fall means the cryptocurrency has lost more than 40% of its value since hitting a record high of $69,000 in November.
The cryptocurrency market is largely unregulated, and investments in cryptocurrencies are highly speculative. The volatility of cryptocurrencies remains a stumbling block to its growth.
Experts are calling for more regulation to manage the numerous transactions and trading in cryptocurrencies.
Cryptocurrencies have had a miserable start to the year, with bitcoin losing $1 trillion in value since its peak in November.
One of the reasons for this decline is the U.S. Federal Reserve’s decision to raise interest rates in March.
This will help fight inflation, which has led to a rapid sell-off of Bitcoin and other cryptocurrencies.
Crypto-hash rates in the Central Asian country of Kazakhstan have also fallen by around 13 per cent as a result of the internet shutdown.
For more information, read the original story in Reuters.