Bitcoin is off the lowest levels of its plunge on Thursday, which was the worst in two years.
The cryptocurrency is down 13% to $985.68 per coin as of 11:10 a.m. ET on Thursday. It earlier fell by about 20%.
Earlier this week, on its first trading day of the new year, bitcoin crossed above the $1,000 mark for the first time since 2013, but it has now tumbled below that level.
See more: News in bitcoin january 2017
From the end of September through Wednesday — just before the plunge — bitcoin gained nearly 100%. It was supported by renewed interest from China, where money rushed out of the country as its currency, the yuan, continued to weaken.
Maybe you are interested: Cryptocurrency Vs. Stocks: What&039s The Better Choice For You? | Bankrate
But on Thursday the yuan witnessed its biggest two-day rise since record keeping began in 2010. This happened amid the government’s efforts to stop outflows from the country and after overnight borrowing costs in Hong Kong surged to a record as high as 100%. That squeezed investors who had bet that the currency would fall.
The yuan’s rise is also pressuring the US dollar, which fell against other major currencies.