Investing.com - Cryptocurrency prices slumped again on Tuesday, with Bitcoin falling near the $3,500 mark. The world’s largest digital coin is now down more than 80% from last year’s high.
Bitcoin plunged 6.3% to $3,809.8 by 12:02 AM ET (05:02 GMT) on the Investing.com index.
XRP fell 4.3% to $0.35760 on the Poloniex exchange.
Ethereum declined 7.4% to $107.74, while Litecoin slid 30.4% to $30.391 on the Bitifinex exchange.
Virtual coins were hit by news of a hard fork in Bitcoin cash, as investors feared it would drive down demand for the digital coin. The digital currency is down more than 75% from its peak of $20,000 in 2017.
Reports that the U.S. is investigating whether cryptocurrency’s rally last year was fueled in part by manipulation and that the U.S. Securities and Exchange Commission penalised two crypto companies for not registering their initial coin offerings (ICO) as securities were also cited as headwind for the crypto industry.
On Monday, Bitcoin slid below $3,500 for the first time in 14 months.
Anthony Pompliano, founder and partner at crypto investment firm Morgan Creek Digital Assets, told CNBC in an interview that he is predicting an 85% decline from the all-time high implying a price of about $3,000.
In other news, Ohio has become the first U.S. state to allow companies to pay their state taxes with digital coins, the Wall Street Journal reported.
Companies can sign up for the service at Ohiocrypto.com and will be able to pay for everything from cigarette taxes to employee withholding taxes. Although it is just available for businesses, the state plans to extend it to individuals, according to the article.