Bitcoin prices recover after plunging 20 per cent from all-time high

Courtney Goldsmith
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Utah Software Engineer Mints Physical Bitcoins
Cryptocurrencies are famously volatile assets (Source: Getty)

Bitcoin's price has bounced back somewhat today after tumbling around 20 per cent from its all-time high.

The cryptocurrency dropped sharply yesterday after Chinese regulators banned initial coin offerings (ICOs), a process wherein a digital token is issued to investors in return for equity, access to a platform or another reward.

Bitcoin's price has been on the decline after it broke through the $5,000 barrier over the weekend to peak at an all-time high of $5,013.

Pushed lower by Chinese regulations today, the cryptocurrency bottomed out at $4,037.50. At the time of writing, bitcoin was trading up 0.83 per cent at $4,355.55.

The wider cryptocurrency market fell from a high of $179bn (£137.5bn) to $145bn today.

The ether token, another popular cryptocurrency, was trading 1.75 per cent up at $303.98 at the time of writing. It followed a similar rocky course over the past few days that dragged it down from highs near $400.

It is not yet clear how China's new rules will impact the more established digital currencies like bitcoin and ethereum's ether token. However, the move was the most significant crackdown yet by a national authority on ICOs.

Read more: ICOh-no: China's the first country to ban initial coin offerings

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