LONDON: Bitcoin price fell to its lowest level this week on Friday, with losses sparked by growing crackdowns in China and environmental concerns falling to nearly 40 percent so far this month.
The largest cryptocurrency extended previous losses and fell as much as 8.2 percent to $ 35,339 as it was stuck in this week’s relatively tight trading range. Most recently it was 6.2 percent less.
“Bitcoin is currently in a little ‘sleep mode’ trading between $ 34,000 and $ 40,000,” said Ulrik Lykke, executive director of crypto hedge fund ARK36. “Many traders acknowledge that at the moment the price appears to be tied to a range and so they may be reluctant to take a position with high conviction.”
The cryptocurrency lost 37 percent in May which, if it continues, would be its worst monthly performance since September 2011. The decline was triggered by China’s efforts to crack down on cryptocurrency mining and trading, and Tesla’s moves to suspend payments over energy concerns.
Energy regulators in China’s Sichuan will soon meet with local energy companies to gather information on cryptocurrency mining, an official said Thursday, which could potentially lead to crackdown at the country’s second largest bitcoin manufacturing center.
Still, Bitcoin made a profit of around 3 percent this week. Crypto markets trade around the clock, with volatility common on weekends. Smaller coins, which usually rise and fall along with Bitcoin, also collapsed. The second largest digital token ether fell by up to 11 percent to a four-day low.