Bitcoin’s price plummeted over the weekend, falling a whopping 19.5% from the all-time highs the popular cryptocurrency set in the past week.
Bitcoin fell to $ 52,148.98 on Sunday morning after hitting an all-time high above $ 64,800 on Wednesday, according to CoinDesk. It last traded a little over $ 55,795.
Other cryptocurrencies, including ether and dogecoin, also took a hit this weekend. The price of ether, the second largest token by market value, fell a whopping 18% and fell below $ 2,000 on Sunday, before recently trading at over $ 2,150. The token had also recently hit record highs, hitting $ 2,500 on Thursday.
Meanwhile, dogecoin, which rose more than 400% last week and hit a record high of 45 cents, fell to 24 cents this weekend.
What exactly drives the drop is unclear.
An unverified report on Twitter alleged that the US Treasury may want to take action against financial institutions for money laundering using cryptocurrency.
A tweet from the account @BuienRadarNL referring to the possibility of a crackdown, citing unnamed sources, went viral Saturday night.
The U.S. Treasury Department did not immediately respond to CNBC’s request for comment.
Cryptocurrencies hit record highs for the past week amid the excitement surrounding the stock market debut of cryptocurrency trading platform Coinbase, which became the largest cryptocurrency company to go public on Wednesday. The company’s blockbuster direct listing briefly valued Coinbase at around $ 100 billion (before dropping to just over $ 62 billion by the end of the week), boosting the rest of the cryptocurrency industry.
Despite those record prices, some investors are concerned that cryptocurrencies such as bitcoin are experiencing a bubble. Dogecoin’s recent spike, which started out as a joke based on the 2013 ‘Doge’ meme, has particularly sparked concerns about a bubble in the cryptocurrency market.