Bitcoin is getting demolished, trading down 12% at $797 per coin, a $108 per coin drop, as of 7:19 a.m. ET.
The fall comes after China announced it has begun an investigation into bitcoin exchanges in China and Shanghai for market manipulation, money laundering, unauthorized financing and other issues, Reuters reports.
Wednesday’s selling comes following three days where the cryptocurrency appeared to be stabilizing, holding in a range between $880 and $920, as traders digested the news that the People’s Bank of China warned investors to exercise caution when investing in virtual currencies.
The cryptocurrency has had a wild start to 2017 after booking a 120% gain in 2016, making it the world’s best performing currency for the second year in a row. Bitcoin rallied more than 20% in the first three-plus trading days of 2017, crossing the $1,000 mark for the first time since November 2013 and coming within $46 of an all-time high.
However, worries surrounding a crackdown on trading in China have punished bitcoin over the past four-plus sessions, erasing about 30% of its value.
Bitcoin is now down more than 14% in 2017.
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