Bitcoin has lost about half of its value from its November peak, and cryptocurrency values are continuing to fall as governments try to rein in its rising popularity.
It's not just Bitcoin; cryptocurrencies have had a bad start to the year in general. Bitcoin has lost nearly 8% in the previous 24 hours and was valued at $USD 35,348 ($49,205) at the time of publication.
Since the start of the year, the world's most valuable cryptocurrency has lost more than 20% of its value.
It reached a new high of $USD 68,990 ($96,036) in November.
Its competitors have fared far worse.
According to CoinDesk, Ethereum, the world's second most valuable cryptocurrency, has dropped more than 12% in the previous 24 hours and was trading at roughly $USD 2,400 ($3,340) as of mid-morning Saturday.
That's an almost 30% reduction from the beginning of the year.
Since the US Federal Reserve said it may dismantle economic stimulus more aggressively than expected, investors have been wary about digital currencies and other risky assets.
The dreaded volatility of cryptocurrency is raising its head once more. (Unsplash)
Governments are retaliating as well. According to Reuters, Russia's central bank has recommended a ban on cryptocurrency use and mining.
Russia is one of the world's largest crypto-mining countries, but its central bank has warned that digital currency might jeopardize the country's financial stability.
The Russian proposal comes only a few months after China imposed a full-fledged ban on cryptocurrency trade and mining.
Other governments are also considering a crypto prohibition. India announced in November that it was prepared to draft legislation to govern digital currencies, however, nothing is known about the idea.
Since its November peak, Bitcoin has lost over half of its value.
India's Prime Minister, Narendra Modi, stated earlier this week that global collaboration is required to address the issues that cryptocurrencies represent.
But pessimism isn't universal. Within the next five years, Goldman Sachs predicts that bitcoin will be worth more than $USD 100,000 ($139,000).
The bank's experts predicted big growth ahead in research released earlier this month, claiming that bitcoin will rapidly eat into gold's market share.