The worth of bitcoin tumbled over the weekend and was down as a lot as 19.5% from document highs posted by the favored cryptocurrency up to now week. Bitcoin dropped as little as $52,148.98 on Sunday morning after reaching an all-time excessive above $64,800 on Wednesday, in line with CoinDesk. It was final buying and selling
Different cryptocurrencies, together with ether and dogecoin, additionally took successful over the weekend. The worth of ether, the second-biggest token by market worth, dropped as a lot as 18% and fell under $2,000 on Sunday earlier than extra lately buying and selling at over $2,150. The token had additionally lately hit document highs, topping $2,500 on Thursday.
In the meantime, dogecoin, which soared greater than 400% at one level final week and hit an all-time excessive of 45 cents, dropped as little as 24 cents this weekend.
What precisely is driving the drop is unclear.
An unverified report on Twitter claimed that the U.S. Treasury Division might be trying to crack down on monetary establishments for cash laundering utilizing cryptocurrency.
A tweet from the account @Fxhedgers that referred to the potential for a crackdown, citing unnamed sources, went viral on Saturday night.
The U.S. Treasury Division didn’t instantly reply to CNBC’s request for remark.
The cryptocurrencies hit document highs this previous week amid the thrill surrounding the inventory market debut of cryptocurrency buying and selling platform Coinbase, which turned the most important cryptocurrency firm to go public on Wednesday. The corporate’s blockbuster direct itemizing briefly valued Coinbase at about $100 billion (earlier than falling to simply over $62 billion by the tip of the week), giving a lift to the remainder of the cryptocurrency trade.
Regardless of these document costs, some traders have been involved that cryptocurrencies like bitcoin are experiencing a bubble. The latest spike by dogecoin, which began as a joke primarily based on the 2013 “Doge” meme, specifically, has fueled considerations of a bubble within the cryptocurrency market.