The value of Bitcoin tumbled this week as American legislators sought to crack down on digital currencies.The cryptocurrency's price tanked to £7,224 on Friday amid fears new laws passed in New York could heavily impact the future of Bitcoin trading.
Regulatory bodies have warned first-time traders, and the sites facilitating first-time buyers, will be forced to register with the US government.Meanwhile, a New York judge ruled on Wednesday that cryptocurrencies are 'commodities', which could have long-term implications for investors down the line.
Finance expert Bob Pisani told CNBC News: "Cryptocurrencies have seen more fallouts today for fears of regulations.
“Bitcoin has now fallen 80 per cent over the last two day as watchdogs waive in the digital currency space."
The developments coincided with fellow cryptocurrency Ripple's decline to a value of 55p, have reached highs of over a dollar only a week earlier.
Bitcoin suffered a major setback earlier this year when South Korea banned the trading of the cryptocurrency at the end of January, while a number of Indian banks froze traders' accounts.
As of 1pm on Friday, online cryptocurrency monitor Coindesk valued Bitcoin at £6,465.
