Bitcoin slumped on Friday to its lowest this week, taking losses sparked by a growing crackdown in China and environmental concerns to almost 40% so far this month.
The largest cryptocurrency continued its previous decline, falling 8.2% to $35,339, as it has been stuck in a relatively tight trading range this week. In the end, it fell by 6.2%.
Ulrik Lykke, executive director of crypto hedge fund ARK36, said: “Bitcoin is currently in a “sleeping mode” with a trading price of between $34,000 and $40,000.
“Many traders are acknowledging that price seems to be range-bound for the moment, why they may be hesitant to take a position with high conviction.”
The cryptocurrency has lost 37% in May, which if sustained would be its worst monthly performance since September 2011.
The reason for the decline was China’s efforts to crack down on the mining and trading of cryptocurrencies, and Tesla’s move to suspend payments due to concerns about energy use.
An official said on Thursday that China’s Sichuan Province’s energy regulator will soon meet with local power companies to gather information about cryptocurrency mining, which could lead to the suppression of the country’s second largest Bitcoin production center.
Despite this, Bitcoin has risen by almost 3% this week. The cryptocurrency market is traded 24/7 and fluctuates generally on weekends.
Smaller coins (usually rising and falling at the same time as Bitcoin) also fell sharply. Ethereum, the second largest digital token, fell as much as 11% to a four-day low.