Bitcoin resumes selling off over the weekend, falling below $ 32,000

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 United States tightened regulations and tax compliance on cryptocurrencies.

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

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

The recent Bitcoin sell-off is a major reversal of the cryptocurrency that appears to have gained prominence among major Wall Street banks and publicly traded companies. However, this month Bitcoin was hit by a number of negative headlines from major influencers and regulators.

Tesla CEO Elon Musk, who contributed to bullish sentiment on $ 1.5 billion worth of Bitcoin purchase, took a blow earlier this month when he announced the automaker was using the purchase of vehicles had exposed the cryptocurrency for environmental reasons.

Musk then sent mixed messages about his position on Bitcoin, implying in a tweet that Tesla may have sold its holdings, only to later clarify that it did not.

“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 demanded stricter regulation of crypto mining and trading, and the U.S. Treasury Department announced it would require stricter crypto compliance 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 have 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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– CNBC’s Michael Bloom contributed to the coverage.

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