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Bitcoin has hit a new all-time low, as fear grows of China’s crackdown on virtual currencies.
Bitcoin plunged below $10 000 per bitcoin to $8,898 on Friday.
It has hit an all- time low for the year of $10.07, and the last time it hit this low was $10 588 in March.
The rally began around 4pm EST (0600 GMT), when the price of bitcoin hit a high of $898.
But then it crashed, crashing to $7,879.
Then it recovered and hit a low of $7 607 on Saturday, before recovering again and hitting $7.80.
The drop was caused by worries about China banning cryptocurrency exchanges, as well as concerns that the Chinese government may be planning to clamp down on the digital currency.
China has a long history of targeting Bitcoin exchanges, and has banned the digital money for several years.
On Friday, a Chinese official threatened to block access to the cryptocurrency exchanges that have been operating in the country, according to Reuters.
The Chinese Central Bank has issued a circular, which said Bitcoin exchanges will be subject to a ban if they do not take down their websites within two days, Reuters reported.
While it was not immediately clear if the circular meant that bitcoin exchanges would be shut down, it did indicate that they would be prohibited from doing business with other cryptocurrency exchanges.
“The central bank is not a neutral regulator, and we will not allow any financial intermediary to operate within the jurisdiction of the central bank,” the official said, Reuters said.
Bitcoin has been a popular investment option for people in Asia, but has been heavily criticized in the United States and around the world for its high volatility and lack of transparency.
