Bitcoin Stumbles as Crypto Price Continues to Fall

New Delhi (CNN Business) — Cryptocurrencies like bitcoin are off to a dismal start to the year and continue to slide as major economies around the world seek to curb their growing popularity.

Bitcoin is down more than 7% in the last 24 hours and was trading at $39,097 as of 3:00 a.m. ET, according to CoinDesk. The world’s most valuable cryptocurrency has plunged more than 15% since the beginning of the year. In November it was trading at an all-time high of $68,990.

Their peers have fared worse recently. Ethereum, which is the second most valuable cryptocurrency in the world, has fallen by almost 8% in the last 24 hours and is now trading at around $2,895, according to CoinDesk. It is down almost 20% since the beginning of January.

Investors have been nervous about digital currencies and other riskier assets ever since the US Federal Reserve signaled it may withdraw economic stimulus more aggressively than expected.

Governments are also cracking down. On Thursday, Reuters reported that Russia’s central bank has proposed a ban on cryptocurrency mining and use. Russia is one of the world’s largest cryptocurrency mining nations, but its central bank has said digital currencies may pose a threat to the country’s financial stability.

The Russian proposal comes just months after China launched a large-scale crackdown on cryptocurrencies, banning both trading and mining.

Other countries are also flirting with a ban on cryptocurrencies. In November, India said it was preparing to introduce a bill that would regulate digital currencies, although much about that proposal is still unknown. Earlier this week, Indian Prime Minister Narendra Modi said that global cooperation is needed to address the issues raised by cryptocurrencies.

Bitcoin could hit $100,000, according to Goldman Sachs 0:57

However, not everyone is pessimistic. Goldman Sachs said that the price of bitcoin could reach more than $100,000 in the next five years. In a report released earlier this month, analysts at the bank said they saw strong gains ahead as bitcoin would increasingly steal more market share from gold.

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