Wired – Bitcoin prices are expected to rise again as a new crackdown on digital currencies in the United States comes into effect.
According to a Bloomberg report, the Federal Reserve on Wednesday suspended the “BitLicense” program, which allows businesses to sell bitcoin.
The program allowed banks and other financial institutions to issue digital currencies to buy goods and services, and was also used to facilitate online transactions.
“While the program may be at an end, it will not end this year,” Fed Vice Chair Janet Yellen said at the press conference.
“There are many things that will continue in the coming months.”
Bitcoin, or cryptocurrency, has gained in popularity in recent years.
In the United Kingdom, which has the largest population of bitcoin users in the world, the cryptocurrency is trading at more than £100,000 ($166,000) per coin.
But as the US crackdown on the digital currency has been widely seen as a step towards banning it from the banking system, the currency is also expected to gain in value.
Bitcoin is now worth less than $900 ($1,038), compared to more than $1,000 in February.
The digital currency also lost around 30% of its value in the past week.
On Wednesday, the value of bitcoin fell more than 2%, to $1.0711 per coin, after falling by more than 5% in February to $9,100.