Bitcoin tumbles from latest excessive as cryptocurrencies take weekend hit

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The worth of bitcoin tumbled on Sunday and was down as a lot as 19.5% from record 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 simply over $55,795.

Different cryptocurrencies, together with ether and dogecoin, additionally took a success 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 file 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 could possibly be seeking 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 file highs this previous week amid the joy surrounding the inventory market debut of cryptocurrency buying and selling platform Coinbase, which turned the biggest cryptocurrency firm to go public on Wednesday. The corporate’s blockbuster direct itemizing briefly valued Coinbase at about $100 billion (earlier than falling to only over $62 billion by the top of the week), giving a lift to the remainder of the cryptocurrency business.

Regardless of these file costs, some traders have been involved that cryptocurrencies like bitcoin are experiencing a bubble. The latest spike by dogecoin, which started as a joke based mostly on the 2013 “Doge” meme, specifically, has fueled concerns of a bubble within the cryptocurrency market.