2017.10.1823:31:00UTC+00Bitcoin Briefly Plummets on Worries of More Scrutiny from U.S. Regulators

Bitcoin declined on Wednesday after signs of more oversight from U.S. regulators in the cryptocurrency market.

At one point during the trading day, Bitcoin fell by almost $500 or around 8.7 percent to a low of $5, 109.70, before recovering some ground, CoinDesk said. The low hit by the digital currency was the lowest level since Thursday, according to the website's data showed.

In the afternoon trading, Bitcoin managed to reverse some declines and traded three percent lower close to $5,410, still higher by five more times in price for the year, according CoinDesk.

On Tuesday, the U.S. Commodity Futures Trading Commission published a report titled “A CFTC Primer on Virtual Currencies”. According to the report, virtual currencies such as bitcoin decline under the jurisdiction of the commission when the digital currency are used in a derivatives contract, or if there is any fraudulent or manipulative activity involving a virtual currency traded in interstate commerce.

The decline after the cryptocurrency hit a record high of $5,856 on Friday, up by almost sixfold in value for the year. The increase in the Bitcoin's value came before possible splits in Bitcoin into at least two other cryptocurrencies in November.