Digital coins also face a regulatory crackdown as officials become increasingly concerned that criminals are exploiting them to fund illicit activities.

The Financial Conduct Authority (FCA) is set to call in Bitcoin experts to train its staff over fears that money launderers and terrorists using cryptocurrencies are steps ahead in the fight against financial crime.

Concerns about the rise of cryptocurrency crime have been growing in the UK amid fears that the technology is lawless and extremely high risk.

The financial regulator has issued a raft of warnings in recent months about the speculative nature of crypto assets, saying consumers should be prepared to lose all of their money.

The watchdog stymied Binance’s plan to launch in the UK earlier this year, but the Bitcoin exchange is in the process of reviving its efforts.

Central banks have also raised concerns about Bitcoin over its potential impact on financial stability and their ability to manage inflation and the economy if its use becomes widespread.

However, some analysts remain bullish about Bitcoin’s outlook. Vijay Ayyar, vice president of the crypto exchange Luno in Singapore, told Bloomberg that there isn’t “anything worrying at this point” regarding the price drop.

Last week, Jack Dorsey, the founder of Twitter and a vocal proponent of the digital currency, predicted that Bitcoin will replace the US dollar.