Bitcoin resumes selloff over weekend, briefly falls below $33,000

A visual representation of the cryptocurrency Bitcoin on November 20, 2018 in London, England.

Jordan Mansfield | Getty Images

The bitcoin sell-off continued after a week of roller coaster trading on Sunday as authorities in China and the US tightened regulations on cryptocurrencies.

According to Coin Metrics, the world’s largest cryptocurrency fell by around 13% to $ 32,915.83 by 9:37 a.m. CET.

Bitcoin was last traded at $ 33,665.89.

The most recent bitcoin sell-off came after Tesla CEO Elon Musk said the automaker suspended bitcoin vehicle purchases.

Musk then sent mixed messages about his stance on cryptocurrency, implying in a tweet that Tesla may have sold Bitcoin holdings, only to later clarify it wasn’t.

“The asset class remains very volatile, with the potential for significant price movements resulting from a single tweet or public comment,” said CIBC analyst Stephanie Price in a statement on Thursday.

A JPMorgan report showed that large institutional investors ditched Bitcoin in favor of gold. The news raises questions about institutional support for cryptocurrency.

Cryptocurrencies continued to slide as Chinese authorities called for stricter regulation of crypto mining and trading, and the U.S. Treasury Department announced that crypto would need to be more compliant with the IRS.

Bitcoin fell more than 30% on Wednesday to nearly $ 30,000, its lowest price since late January, according to Coin Metrics. The cryptocurrency peaked at $ 65,000 in April.

“Even with this week’s sell-off, cryptocurrencies had an incredible run over the past year,” Price said.

Bitcoin is up 268% over the past year, according to Coinbase. Ether, the second largest cryptocurrency, grew by more than 840%.

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