Bitcoin fell by its biggest one-day drop since February, just days after it reached a record high, according to the report. mentioned Bloomberg Agency.
The cryptocurrency fell by 10.8 percent within 24 hours, from $ 61,396 to $ 54,750.
It at one point reached its lowest level at $ 51,300 after dropping more than $ 7,000 in an hour, before recovering partially.
Ethereum, the second-largest cryptocurrency, was also down nearly 18 percent before losses were trimmed.
Several online outlets attributed the decline to speculation that the US Treasury may take action against money laundering that takes place through digital assets.
Bitcoin hit a record high of $ 64,869 on Wednesday ahead of the NASDAQ debut on the stock market Coinbase.
Coinbase ended its first trading week higher after the bullish reviews from Wall Street analysts.
Dogecoin rose more than 110 percent on Friday before falling the next day.
And the demand for Dogecoin was so fast that investors trying to trade it via Robinhood caused the service to stop.
Bitcoin has faced more regulatory scrutiny in recent months, and Turkey’s central bank said on Friday that it is banning the use of cryptocurrencies as a valid payment method starting April 30.
The move caused the world’s largest currency to decline by up to 5 percent, and the bank said: The unknown nature of digital currencies brings the risk of non-recoverable losses.
Besides the unsupported report on the US Treasury’s campaign, the downturn factors may include financial leverage, Coinbase subscribers discarding shares after direct listing, and a massive outage in the Chinese province of Xinjiang that hit Bitcoin miners.
And in March, Insider reported that India will likely block Bitcoin and fine anyone who buys, holds, or sells any form of digital currency.
While there are still concerns about the risks associated with the digital currency, some companies are adopting the cryptocurrency, as PayPal has begun accepting Bitcoin as a method of payment.
Wall Street firms, such as Morgan Stanley, are considering providing access to digital tokens to some of their wealthiest clients.