Bitcoin's fall was part of a broader cryptocurrency selloff. Every major cryptocurrency has suffered double-digit losses over the last 24 hours, according to CoinMarketCap. Ethereum is down 21 percent. Bitcoin Cash is down 25 percent. Litecoin is down 20 percent, while Dash is down 21 percent, and Monero is down 25 percent.
It's hard to say what causes cryptocurrencies to go up or down on any given day. In recent months, Bitcoin and other cryptocurrencies have exhibited classic signs of a speculative bu
bble, with millions of ordinary investors flooding into the market in hopes of making an easy buck. That helped to push Bitcoin to new heights, but it also heightened the cryptocurrency's already significant volatility.
Bitcoin dropped more than 17 percent to a low of $11,182.71 on Tuesday, falling below $12,000 for the first time since December 5, according to CoinDesk. CoinDesk's bitcoin price index tracks prices from cryptocurrency exchanges Bitstamp, Coinbase, itBit and Bitfinex. As of 12:13 p.m. ET, bitcoin was trading more than 13 percent lower at $11,759.73 a coin, according to CoinDesk.