Bitcoin fell 15% on Saturday night, its biggest intraday drop since February, just days after hitting record highs.
It is not known what caused the sale.
The plunge in the world’s most popular digital coin came after reports attributed the decline to speculation that the US Treasury could take action against money laundering carried out using digital assets, according to Bloomberg.
Separately, a power outage in China’s Xinjiang region, which is believed to fuel much of Bitcoin’s mining, has been blamed for the sale, Reuters reported, citing data website CoinMarketCap.
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In the past 24 hours, the value of one bitcoin has fallen 9.5% from $ 61,306.11 to $ 52,810.06, according to CoinGecko, a crypto market data site.
The price of a bitcoin hit a low of $ 52,810.06 late Saturday after falling more than $ 7,000 in a single hour, before losses eased. Bitcoin is down 15% from its high of $ 64,895.22 on Wednesday.
Despite the declines, bitcoin is valued at over $ 1 trillion after rising nearly 700% in the past 12 months.
Other cryptocurrencies also fell over the weekend. Ether, the second largest digital currency by market value, has fallen by more than 10%.
Bitcoin prices topped $ 64,000 last week as Coinbase, the largest crypto exchange in the United States, made its public debut on the Nasdaq.
The Coinbase listing, considered a landmark event for the cryptocurrency industry, has attracted amateur traders.
The sharp rise in the value of bitcoin recently raised fears of a possible bubble in the cryptocurrency market, some analysts warn, with bitcoin having more than doubled since the start of 2021. About 74% of those polled in the latest fund Bank of America Global Managers report that the world’s most popular digital coin is a bubble.
Dogecoin, the cryptocurrency created as a parody, hit a record high on Friday. As the weekend approached, it had climbed over 400% last week and skyrocketed over 5,000% since the start of the year, further fueling concerns about a cryptocurrency bubble.
Robinhood briefly suffered a “major outage” last week amid the Dogecoin rally, angering many retail investors.
Over the weekend, Dogecoin fell from its all-time high after crossing 44 cents on Friday, although it recovered some of its losses and is currently trading around 31 cents.
Bitcoin had already been under pressure in recent days. It fell more than 4% on Friday after Turkey’s central bank banned the use of cryptocurrencies from the end of April, saying crypto payments carry “significant risks.” India is also said to be on the verge of proposing a law banning cryptocurrencies, imposing a fine on anyone who trades in the country or owns such digital assets.
Certainly, more and more companies have started to accept currency as an official payment option despite concerns about the volatility of the cryptocurrency market. Investment banks like Morgan Stanley have offered some of the wealthiest clients access to Bitcoin funds.
In February, Tesla CEO Elon Musk said the electric car company would accept bitcoin as a payment method for all models of its cars in the United States. The online payment company PayPal has also started accepting Bitcoin as a payment method.
The euphoria surrounding Coinbase’s trading debut could trigger a short-term ‘buy the rumor, sell the event’ type of backlash for investors, said Edward Moya, senior market analyst at OANDA forex trading, in a note.
“Buy the rumor, sell the news,” is a market adage based on the belief that an asset can rise in anticipation of rumors, then stagnate or fall when investors take profits after the news is released.