A backdrop of lower liquidity and the threat of tightened regulation that has sent crypto markets spiralling has not dimmed the optimism of some of the "nascent" asset class' biggest bulls, which are buying into the sell-off on the belief the long-term opportunity is still sound.

While the sell-off can be partially attributed to China’s move to ban digital tokens as a form of payment and Elon Musk’s commentary surrounding bitcoin’s toll on the environment, there’s more at play, according to head of research at online broker Pepperstone, Chris Weston.