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Bitcoin price falls after China calls for crackdown on bitcoin mining and trading behavior

Bitcoin’s price tumbled Friday following an intensified call from Chinese authorities to crack down on mining and trading of the cryptocurrency.

Chinese Vice Premier Liu He and the State Council said in a statement that tighter regulation is needed to protect the financial system.

The statement, released late Friday in China, said it is necessary to “crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.”

Bitcoin’s price on Coin Metrics slid more than 8.5% as news of the statement circulated, part of a broader plunge that has seen the digital currency tumble more than 40% from its peak. Other cryptos suffered huge losses as well, with Ethereum and Dogecoin both down more than 11% amid a continuing washout in prices for the group.

Bitcoin resumes sell-off over weekend, falls below $32,000

The bitcoin sell-off continued Sunday following a roller-coaster week of trading, as authorities in China and the U.S. move to tighten regulation and tax compliance on cryptocurrencies.

Bitcoin fell roughly 16% to $31,772.43 by 12:27 p.m. ET, according to Coin Metrics data.

The world’s largest cryptocurrency on Friday afternoon traded at $35,891.20.

Bitcoin’s recent sell-off is a major reversal for the cryptocurrency, which appeared to be gaining traction among major Wall Street banks and publicly traded companies. This month, however, bitcoin has been hit by a series of negative headlines from major influencers and regulators.

A JPMorgan report showed large institutional investors were dumping bitcoin in favor of gold. The news raised questions about institutional support for the cryptocurrency.

Cryptocurrencies continued to slide as Chinese authorities called for tighter regulation on crypto mining and trading, and the U.S. Treasury announced that it would require stricter crypto compliance with the IRS.

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

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

Reference: CNBC