Why has bitcoin dropped to a two month low?

Bitcoin has posted its biggest one-day drop in almost two months, amid warnings that novice investors could suffer heavy losses from speculating in crypto assets such as “meme coin” dogecoin. Bitcoin tumbled more than 11% on Sunday, dropping from about $62,000 (£45,000) to $55,000 – its lowest level since the end of March.

What's driving bitcoin's price down?

There are a few factors pushing Bitcoin's price down, but they can be summed up in one word: uncertainty. Uncertainty pushes investors out of speculative assets like crypto, causing prices to drop. It's not only crypto that's crashing. Stock markets around the world are also tumbling.

Will government crackdown on Bitcoin trigger another 'crypto winter'?

Bitcoin and related assets have also come under increased scrutiny from regulators around the world as they have grown into a bigger part of the financial markets. “We believe government crackdown on cryptocurrencies can trigger another ‘crypto winter’ and reduced trading activity.

What has happened to bitcoin?

This was the largest single-day fall Bitcoin has ever seen. Since then, the price has rebounded to $53,00, up 11%. The cryptocurrency is now aiming to retake the $1 trillion market cap mark it lost earlier today. Bitcoin’s previous largest daily drop came just one month ago on January 11.