Dogecoin, the cryptocurrency begun as a joke, on Tuesday is tumbling for the ninth straight day and digital currencies more broadly have lost some of their appeal to investors and speculators.
Dogecoin recently traded at 18 cents, down 17%. It has slumped 48% in the past month.
Bitcoin, the largest cryptocurrency, recently traded at $29,431, down 11%. It has slid 45% in the past three months.
Bitcoin has dipped below $30,000, a key support level, as China has amped up its crackdown, all but banning transactions in digital currencies.
The decline came after the People’s Bank of China told the country’s major financial institutions Monday to stop facilitating virtual-currency transactions, increasing the negative sentiment in crypto markets.
"You would think if [the People's Bank of China] limited the amount of mining, [Bitcoin] would actually go up," TheStreet.com Founder Jim Cramer said.
"What this tells me is that there’s a considerable number of people who are dumping Bitcoin because they fear the PRC."
Agricultural Bank of China, one of the country’s biggest banks, published a statement outlining a ban that prohibits customers from doing any business with cryptocurrencies.
Dogecoin isn’t used for anything; it's a vehicle for speculation.
And bitcoin has little practical value either. It can be used to buy certain things. But given its extreme volatility buyers and sellers don’t have much incentive to use it as a medium of exchange.
Thus, many analysts say the digital currencies have all the hallmarks of a bubble -- one that will burst and cause pain to retail investors and speculators with heavy positions in the currencies.