Bitcoin, the world's largest cryptocurrency, has seen a recent downturn that has wiped out its gains since the start of the year. This falls in line with the broader cryptocurrency market experiencing volatility. The reasons behind the downturn are multifold but prominent among them are investor apprehension and potential regulatory changes.

Cryptocurrency has been embraced relatively more widely in Japan than in many other countries. The digital currency exchange sector is regulated by the Financial Services Agency (FSA). Bitcoin's striking volatility matters to a large number of people in Japan who have invested in it. This news may cause significant unease among Japanese investors who are particularly sensitive to market fluctuations.

In the US and EU, regulatory concerns are also primarily responsible for the volatility in the cryptocurrency market. Both regions have quite a significant number of cryptocurrency enthusiasts and investors, so a similar downturn would also be seen as important financial news. In both, the issue of cryptocurrency regulation is still a matter of ongoing debate.