LONDON (Reuters) – Bitcoin fell as much as 14 percent on Tuesday and touched a four-week low below $ 12,000, as fears of regulatory crackdowns grew after reports that the Korean finance minister South had said that banning the cryptocurrency trade was still an option.
The South Korean news website Yonhap reported that Finance Minister Kim Dong-yeon had told a local radio station that the government would present a series of measures to suppress the madness of the cryptocurrency investment "irrational "
Bitcoin slipped into the news, trading as low as $ 11,730 on the Luxembourg-based Bitstamp stock exchange, up 13.6 percent on the day.
The latest drop leaves bitcoin more than 40 percent below the records of about $ 20,000 reached in mid-December, erasing around $ 125 billion of its "market capitalization" – the price of bitcoin multiplied by the total number of bitcoins that have been "extracted" or released to the market.
Report of Jemima Kelly; Tommy Wilkes edition