After a week of gain for cryptocurrencies, there was a sharp decline in Bitcoin over the weekend, leading to nearly 14 percent drop in value in less than an hour at the weekend, from about $59,000 to $51,000.
Other cryptocurrencies like Ethereum and Dogecoin also saw their values declining before they rebounded.
Bitcoin’s value has risen this year after gaining more mainstream acceptance. The crash in price this weekend might have been triggered by an unconfirmed Twitter rumor that the US Treasury was planning to crack down on money laundering schemes involving cryptocurrencies. He agency did not immediately respond to a request for comment on Sunday.
Bitcoin’s rapid overnight plunge is the latest indicator that the crypto market remains wildly volatile.
Last week crypto enthusiasm seemed to reach a peak as trading platform Coinbase went public at a valuation of $86 billion, followed by a wild 500 per cent rally in Dogecoin — an asset that was created as a joke in 2013.
Cryptocurrency backers have spent years insisting that bitcoin, ethereum and other digital coins could revolutionize the world of finance and with the success of Coinbase’s Wall Street debut Wednesday, those backers are finally having their moment.
Tesla has started accepting bitcoin payments for its cars and now holds some of the digital currency on its balance sheet. Payment processors including PayPal (PYPL), Mastercard (MA) and Visa (V) are trying to streamline crypto payments on their networks. Meanwhile, Goldman Sachs will reportedly soon offer its private wealth management clie nts avenues to invest in bitcoin and other digital currencies and Morgan Stanley announced that it will offer its wealthy clients access to bitcoin funds.