The value of bitcoin has fallen sharply since reaching record heights last month, briefly falling below $90,000 on Tuesday compared with above $126,000 at the start of October.

Below AFP explains why investors are turning away from the volatile asset.

- What has caused the latest price drop? -

Prior to the recent slump, bitcoin broke a series of record highs in the wake of Donald Trump's return to the White House. The US president came out strongly in favour of cryptocurrencies before his re-election and has continued to do so.

Bitcoin first surpassed $100,000 in May before reaching its latest record of around $126,251 last month.

Support came also from expectations of an interest-rate cut from the Federal Reserve following weak US jobs data, which weighed on the dollar.

However, aft

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