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 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 helped fuel positive sentiment when his company bought $ 1.5 billion worth of Bitcoin, took a beating earlier this month when he announced the automaker had announced the Buying vehicles using the cryptocurrency had been suspended 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 clarify later 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 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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– CNBC’s Michael Bloom contributed to the coverage.