On Sunday, Bitcoin dived overnight, opening a week of declines after regulators in China and the U.S. began a survey on cryptocurrencies.
Earlier this year, cryptocurrencies` price slumped last week after rising many investors’ interests. Bitcoin decreased 30% since May 16, which includes a Sunday’s drop. It is also down more than 50% from its all-time high of $64,788.45 in April.
On Sunday, the selloff of the bitcoin continued following a very unstable week of trading as authorities in the U.S and China move to tighten tax compliance and regulation on cryptocurrencies.
According to Coin Metrics` data, Bitcoin fell by 16% to $31,772.45.
The world’s most popular cryptocurrency’s price rose on Monday slightly to $36,315.54.
For the cryptocurrency, Bitcoin’s recent selloff is a significant reversal. It seemed to be gaining traction in publicly traded companies and prominent Wall Street banks. However, this month, a series of negative headlines from significant regulators and influencers hit bitcoin.
Tesla CEO Elon Musk announced this month that he suspended vehicle purchases using cryptocurrency, citing environmental concerns.
Musk later revealed mixed messages about his position on bitcoin. That implies a tweet stating that Tesla might sell its holdings but later clarified that it had not sold.
On Thursday, the analyst Stephanie Price said that the asset class is still volatile, with significant price movements resulting from a single public comment or a tweet.
A JPMorgan report revealed that more investors started to replace bitcoin with gold. This news produced more questions for cryptocurrency regarding institutional support.
Why Bitcoin Continue to Decline?
After the Chinese authorities came up with tighter regulation on trading and crypto mining, Cryptocurrencies kept sliding. It also resulted from the announcement of the U.S. Treasury. It set stricter crypto compliance with the Internal Revenue Service.
According to Coin Metrics, on Wednesday, Bitcoin plunged over 30% to nearly $30,000, its lowest price since January. The peak of cryptocurrency was in April, near $65,000.
Stephanie Price said that cryptocurrencies had a run last year, even with the current week’s selloff.
According to Coinbase, Bitcoin is up 269% in the past year. However, the second-largest cryptocurrency – Ether, grew more than 845%.
Other cryptocurrencies also began to fall during this weekend. On Sunday morning, Ethereum was down by 20%, trading around $1,950. Dogecoin fell by 17%, and binance coin was also down by 27%. Cryptocurrency markets are open 24 hours, seven days a week.