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Posted on January 6, 2017 by staff

Bitcoin value crashes days after recording 3-year high

The value of digital currency bitcoin crashed by more than a fifth yesterday after hitting a three-year high of $1,161 on Tuesday (January 3).

Despite 2017’s strong start, the value of one bitcoin reportedly dropped to $893 before stabilising around $950.

Although different exchanges have recorded different amounts for the all-time high, the record level was recorded by Bloomberg.

Analysts had previously linked the currency’s jump to increased demand from China, which is where the majority of bitcoin trading takes place.

The notoriously-volatile currency is used to experiencing dramatic swings in value, and relies on being an anonymous way to move money globally through online transactions handled by thousands of computers.

But this sudden drop has been attributed to efforts in Beijing to shore up the value of the Chinese yuan, which posted one of its biggest-ever rises on Thursday.