Bitcoin has been subject to large peaks and troughs in its value since it came into existence in 2009. Over the past week, we've seen the market value of Bitcoin, Ripple and other cryptocurrencies nose dive after the extreme highs of mid-late December. But why is crypto so vulnerable to such extreme changes?

One of the main reasons that Bitcoin and other cryptocurrencies are so vulnerable to volatile changes in their market value is down to the fact that they are owned by a small group of investors. According to figures from 2017, roughly 95% of all cryptocurrency was owned by just 4% of those who possessed Bitcoin.

In addition, Bitcoin is constantly being traded as it's not limited by any specific trading hours; this means that changes in its value are more apparent.

On top of that, as Bitcoin becomes more and more popular, we are likely to see more governments showing an interest in enforcing regulations. The latest news on the rules to be imposed by China, France and South Korea on crypto trading has had a dramatic impact on the market value of cryptocurrencies. The announcements are causing many to panic and sell off their shares, leading to a sharp drop in Bitcoin's overall value.