Bitcoin briefly hit below $10,000 on Tuesday on Coinbase, a leading cryptocurrency exchange, for the first time since crossing the milestone price in November 2017. Other key cryptocurrencies were also under pressure, with ripple falling below $1 and Ethereum sinking a whopping 30 percent to a low of $854 before heading higher. As of 2:11 p.m. HK/SIN, bitcoin had recovered significantly and was trading at 11,264.01 on Coinbase, a decline of $7,799.59 or 40.84 percent since last month. Still, bitcoin remains over 1,100 percent higher than its price 12 months ago, giving traders hope that it may reclaim its former glory once again.

The massive cryptocurrency losses were largely spurred by continued talks of harsh regulation against cryptocurrency trading, specifically but not limited to South Korea and China’s proposed bans. On Tuesday, Steven Maijoor, the chair of the European Securities and Markets Authority (ESMA), warned that "You don't have the regular protection that regulated investments offer, and can lose all of your investments.” Thus far, ESMA hasn’t taken any steps to ban cryptocurrency trading, but Maijoor has stated that it’s his duty to warn traders of the risk of crypto trading and to prepare for global regulatory developments as they arise.

Commodity Market Movements

Oil prices retreated from this week’s highs, likely caused by profit-taking, prompting some analysts to call for a near-term correction, even though the markets remain well-supported due to restricted supply and high demand. Brent crude futures were down 0.06 percent in the mid-afternoon, to $69.11 per barrel, and U.S. WTI futures were down 0.08 percent to $63.68 per barrel.

The U.S. dollar was slightly higher on Wednesday but still remained near three-year low due to the prevalent beliefs that global monetary policies will be normalized in the coming months, a series of moves which will keep the greenback’s value low. The dollar was up 0.33 percent against the yen to 110.80, and was up 0.14 percent against the loonie. The greenback also posted gains against the Swiss franc and the euro, where it traded at $1.2244. The dollar index was 0.21 percent higher to 90.59.