Bitcoin slumps nearly 10% as pullback from record high gathers pace

Bitcoin slumped 10% to a 10-day low before paring some of its losses Thursday as traders feared tighter U.S. regulations.

The world’s most popular cryptocurrency Bitcoin was last down 10.6% at $31,724. It has lost about 27% of its value after touching a record $42,000 on Jan. 8.

The pullback comes amid growing concerns that bitcoin is one of a number of financial market price bubbles.

Fears that U.S. President Joe Biden’s administration could attempt to regulate cryptocurrencies have also weighed on sentiment, traders said.

During a Senate hearing on Tuesday Janet Yellen, Biden’s pick to head the U.S. Treasury, expressed concerns that cryptocurrencies could be used to finance illegal activities.