Different cryptocurrencies, together with ether and dogecoin, additionally took a success over the weekend. The value 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 report 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 seeking to crack down on monetary establishments for cash laundering utilizing cryptocurrency.
A tweet from the account @Fxhedgers that referred to the opportunity of 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 report highs this previous week amid the thrill surrounding the inventory market debut of cryptocurrency buying and selling platform Coinbase, which grew to become 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 simply over $62 billion by the top of the week), giving a lift to the remainder of the cryptocurrency trade.
Regardless of these report costs, some buyers have been involved that cryptocurrencies like bitcoin are experiencing a bubble. The current 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.