Cryptocurrencies Plummeted Amid Talk of Clampdowns—But We Don’t Really Know Why

Bitcoin and other competing digital currencies have been suffering downturns, though you shouldn’t believe anyone who tries to tell you exactly why this is happening.

The numbers: At the time of writing, Bitcoin’s price was down more than 20 percent in the past 24 hours, hovering around $9,500. (It hit a high of more than $19,000 in December.) In fact, nearly every cryptocurrency has lost significant value during this most recent of crashes.

Some speculation: South Korea is currently considering a ban on cryptocurrency trading, and China is also mulling a crackdown on Bitcoin mining. Both prospective moves are causing unease in digital-currency circles. There’s even talk of imposing international regulations on the market.

But: The truth is, it’s hard to say for certain why the crash came about beyond the fact that, well, more people are selling than buying.