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Bitcoin is plunging again

Jan 7, 2017, 15:06 IST

Bitcoin was still falling against the dollar on Saturday after losing more than a fifth of its value in trade Thursday.

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Bitcoin was down more than 7% to $832 at 9:21 a.m. GMT (4:21 a.m. ET), according to Markets Insider. That's down from over $1,100 earlier in the week.

Here's the chart:

Markets Insider

Bitcoin surged in the weeks running up to Christmas, battled volatility in the run-up to New Year and first few days of 2017, before tanking Thursday.

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Some commentators have suggested that the rise was caused by Chinese investors looking to move their money out of China ahead of a rumoured further devaluation of the renminbi.

This theory is backed up by moves in the renminbi Thursday that coincided with bitcoin's plunge. The renminbi rallied 2.6% against the dollar, posting its biggest two-day gains ever.

China's central bank on Friday also warned investors to exercise caution when investing in virtual currencies such as bitcoin and met with the representatives of a major bitcoin trading platform in China, BTCC, according to Reuters. That appears to have shaken confidence further.

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