While many observers say the recent falls show that the bubble has burst, those backing the nascent markets say that regulation is welcomed and wild price swings to be expected.
"Most people who were buying bitcoin and other cryptocurrencies most recently, are not using them for transactions, but holding them in the expectation of profiting from the endless rising price", Hussein Sayed, chief market strategist at FXTM, said in an email on Thursday morning.
According to the report, Hong Nam-ki, minister of the office for government policy co-ordination, said while government officials still hold different opinions over the issue, the meeting today expects to reach a decision on a cryptocurrency exchange regulation.
Separately, a senior Chinese central banker said authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services.More news: YouTube Makes It Even Harder for Creators to Monetize Videos
Bitcoin, the king of all cryptocurrencies, dropped below $10,000 last night, in the steepest drop-off in value since January of past year.
China has also moved to crackdown on cryptocurrency but instead looking into banning trading and miners, causing a huge shakeup in the market. It's also put blockchain - the software technology enabling Bitcoin and other cryptocurrencies - on a trajectory of its own. At the top of the selloff, the total cryptocurrency market capitalization plunged to $450 billion, sharply lower from an all-time high of above $800 billion.
It is notoriously hard to be certain of what causes moves in Bitcoin's value - the asset has been much more volatile than most traditional currencies and commodities to date - but speculation that regulators may be about to restrict trade has been causing concern. According to CoinMarketCap data, ethereum was trading more than 23% lower at $824.10 a coin after sinking beneath $1,000 on Tuesday. Likewise, Ethereum and Ripple, the next two major crypto currencies, has gained nearly 40% from the yesterday's low to trade at $1,000 and $1.37, respectively.