Bitcoin collapses after recent high as cryptocurrencies hit on weekends

The price of bitcoin fell over the weekend and fell 19.5% from the all-time highs posted by the popular cryptocurrency last week.

Bitcoin fell as low as $ 52,148.98 on Sunday morning after hitting an all-time high above $ 64,800 on Wednesday, according to CoinDesk. It was the last transaction of just over $ 55,795.

Other cryptocurrencies, notably ether and dogecoin, also took a hit over the weekend. The price of ether, the second largest token in terms of market value, fell 18% and fell below $ 2,000 on Sunday before trading more recently above $ 2,150. The token had also recently hit record highs, surpassing $ 2,500 on Thursday.

Meanwhile, dogecoin, which climbed over 400% at one point last week and hit an all-time high of 45 cents, fell as low as 24 cents over the weekend.

It is not clear what exactly caused the decline.

An unverified report on Twitter claimed that the US Treasury Department may seek to crack down on financial institutions for money laundering using cryptocurrency.

A tweet from the account @Fxhedgers which raised the possibility of a crackdown, citing anonymous sources, went viral on Saturday evening.

The US Treasury Department did not immediately respond to CNBC’s request for comment.

Cryptocurrencies hit record highs last week amid the excitement surrounding the debut of cryptocurrency trading platform Coinbase, which has become the largest cryptocurrency company to enter the market. stock exchange Wednesday. The company’s successful direct listing briefly valued Coinbase at around $ 100 billion (before dropping to just over $ 62 billion by the end of the week), giving the rest of the world a boost. cryptocurrency industry.

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Despite these record prices, some investors fear that cryptocurrencies like bitcoin are experiencing a bubble. The recent dogecoin spike, which started out as a joke based on the 2013 “Doge” meme, in particular, has fueled concerns of a bubble in the cryptocurrency market.

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