Prices of other cyprtocurrencies such as Ethereum and Ripple also tumbled.
The price of Bitcoin, the world's largest cryptocurrency, has slumped below $7,000 -- for the first time since February 7. This comes in wake of regulations imposed on cryptocurrencies in Asia. In Japan, two virtual currency exchanges -- Mr Exchange and Tokyo Gateway -- were closed down this week amid increasing scrutiny. Prices of other cyprtocurrencies such as Ethereum and Ripple also tumbled. However, some analysts have said that the Bitcoin is nearing a 'death cross'. According to Investopedia, a death cross is a crossover resulting from a security's long-term moving average breaking above its short-term moving average or support level. It is so named due to the shape created when charting the activity and its association with a downward market trend.
Considered a bearish signal within the market, a death cross occurs when the short-term, 50-day moving average, also called a price trend, crosses below the long-term, 200-day moving average.
At the beginning of this year, according to Bitstamp, Bitcoin was trading at $13,443, which means the currency has tumbled almost by 50%. In December last year the currency has touched the $20,000-mark. Last week also the value of Bitcoin fell
more than 4 per cent on the main Japanese markets after the country's national regulator issued a warning to the world's largest cryptocurrency exchange, Binance, over its unlicensed operations. The value of the most popular digital currency was at about $8,762 according to Japanese cryptocurrency exchange Coincheck.
Japan, a pioneer in the regulation of the sector, has intensified its vigilance over traders since the hacking of the Coincheck exchange house in January, when some $493 million worth of virtual currencies disappeared.