Bitcoin is getting demolished, trading down 12% at $797 per coin as of 7:19 a.m. ET. Wednesday's selling comes following three days where the cryptocurrency appeared to be stabilizing, holding in a range between $880 and $920, as traders digested the news that the People's Bank of China warned investors to exercise caution when investing in virtual currencies.
The cryptocurrency has had a wild start to 2017 after booking a 120% gain in 2016, making it the world's best performing currency for the second year in a row. Bitcoin rallied more than 20% in the first three-plus trading days of 2017, crossing the $1,000 mark for the first time since November 2013 and coming within $46 of an all-time high.
However, worries surrounding a crackdown on trading in China have punished bitcoin over the past four-plus sessions, erasing about 30% of its value.
Bitcoin is now down more than 14% in 2017.
