The largest crypto coin was down 9% to $55,323 in New York at 9:30 a.m. on Sunday, after falling as much as 15% to $51,707 in the Asian session.
Other currencies were also affected. Ether, the second-largest cryptocurrency, fell as much as 18 percent of under $2,000 until recovering. Coinbase Global Inc. on Wednesday. Since receiving positive feedback from Wall Street analysts, Coinbase finished its first business week on a strong note.
The drop was due to rumors that the US Treasury would crack down on tax evasion through digital properties, according to many online sources.
Last week, Bitcoin reached a new peak of $64,869 ahead of the Nasdaq launch of digital currency
Dogecoin, which has been backed by Elon Musk and Mark Cuban, soared over 110 percent on Friday before plummeting the next day. Investors seeking to sell the token on Robinhood collapsed the platform, according to a blog post published Friday by the electronic marketplace. According to CoinGecko.com, the overall current valuation of cryptocurrency, which had just reached $2 trillion, has dropped to about $1.96 trillion. Dogecoin, which began as a joke in 2013, is currently priced at about 29 cents after reaching a high of 40 cents on Friday.
“The crypto world is waking up with a bit of a sore head today," said Antoni Trenchev, co-founder of crypto lender Nexo. “Dogecoin’s 100% Friday rally was ‘peak party,’ after the Bitcoin record and Coinbase listing earlier in the week. Euphoria was in the air. And usually, in the crypto world, there’s a price to pay when that happens."
Besides the “unsubstantiated" report of a U.S. Treasury crackdown, Trenchev said factors for the declines may have included “excess leverage, Coinbase insiders dumping equity after the direct listing, and a mass outage in China’s Xinjiang province hitting Bitcoin miners."
