The digital currency fell to $6,081, breaking below $6,400 for the first time in about a week and reaching its lowest level since February 6, according to CoinDesk.
Japan’s largest crypto exchange, bitFlyer, was given an order by Japan’s Financial Services Agency to suspend the creation of new accounts while it makes improvements, especially in its measures to stop money laundering and terrorist financing.
bitFlyer said in a statement: “Our management and all employees are united in our understanding of how serious these issues are, as well as how serious we are in responding to them going forward.
“In order to maximise our efforts towards building a suitable service and improving on the issues identified, we have temporarily suspended account creation for new customers of our own volition.”
The price tumble follows a warning by a rival cryptocurrency product designer who told investors to only put money into bitcoin that they would be willing to lose.
At the time of writing the price of bitcoin is $6,157.08 which equates to an 8.34 percent drop since yesterday.
Cassius Kiani, a Product Designer and Partner at AtlasNeue, said: “There are a lot of actors here who have bought huge amounts of Bitcoin and they do not know where they have got them from.
“If speculation is going up and people want to buy then there is no circulation, so what is in circulation is finite.
“People turn around and bid more and more and more.
“It is going to be really interesting to see where all the cryptocurrency markets are at around August, that seems to be when things really start to take off.
“In my opinion bitcoin will hit the highs of last year but hedge your risk because fundamentally if you are banking on spending £5,500 on a single bitcoin and you are expecting it to hit £15,000, ask yourself what would happen if it hits zero.
“Do some research, understand what you are doing, don’t just do it because someone else is doing it because although that is what drives the height, do not count on that.”
It follows the seizure by Chinese police of more than 200 computers used to mine the cryptocurrencies bitcoin and ethereum after a man tried to swindle the electricity company to avoid the bills he faced to power his operation, the Xinhua news agency reported on Friday.
A suspect surnamed Ma had allegedly stolen 150,000 KW hours of electricity in more than a month, the news agency reported.
Ma was quoted as telling police in Anhui province he had bought the computers in April but was shocked to learn that his daily power bill was more than 6,000 yuan ($924).
Police uncovered his scam when they found the electricity metre for the suspected cryptocurrency mining operation had been short-circuited, “which was likely an attempt to dodge the power bill”.
China was home to the majority of cryptocurrency mining operations before Beijing last year began to discourage it as part of a larger crackdown on bitcoin and other cryptocurrencies.
It is unclear how much of mining activity has moved offshore or been shut down.