Finance News

Bitcoin falls under $ 40,000 because it closes the wild week of buying and selling

A bitcoin sign can be seen at the entrance of a cryptocurrency exchange office on April 16, 2021 in Istanbul, Turkey.

Chris McGrath | Getty Images

Bitcoin's price fell back below USD 40,000 on Friday after Chinese authorities increased calls to crack down on cryptocurrency mining and trading.

The digital coin last fell about 11% at a price of $ 35,691.01 at 3:35 p.m. ET is on track for its worst week since March 13, according to data from Coin Metrics. It rebounded above the $ 42,000 mark on Thursday as digital currencies attempted to rebound from a major sell-off earlier in the week.

Other cryptocurrencies were down on Red Friday, with Ether most recently falling 16.7% to $ 2,334.28, XRP falling 17% to 99 cents, and Litecoin falling 17.7% to $ 173.3. Dogecoin, a meme-inspired crypto backed by Tesla CEO Elon Musk, fell 14.8% to 34 cents.

Bitcoin's profits were capped Friday after the U.S. Treasury Department announced a day earlier that a transfer of cryptocurrencies worth $ 10,000 or more would need to be reported to the IRS.

"Cryptocurrency already poses a significant identification problem as it broadly facilitates illegal activities, including tax evasion," said the Treasury Department.

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