The biggest cryptocurrency extended earlier losses, falling
as much as 8.2 percent to $35,339 as it stayed pinned in this week's relatively
tight trading range. It was last down 6.2 percent.
"Bitcoin is currently in a bit of 'slumber mode'
trading in the range of $34,000 and $40,000," said Ulrik Lykke, executive
director at crypto hedge fund ARK36.
"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 percent in May, which if
sustained would be its worst monthly performance since September 2011.
Its drop was triggered by China's efforts to crack down on
mining and trading of cryptocurrencies, and Tesla's move to halt payments over
worries about energy use.
Energy regulators in China's Sichuan will soon meet local
power companies to gather information on cryptocurrency mining, an official
said on Thursday, potentially leading to a clampdown in the country's
second-biggest Bitcoin production hub.
Still, Bitcoin has eked out a gain of around 3 percent so
this week. Crypto markets trade 24/7, with volatility common at weekends.
Smaller coins, which typically rise and fall in tandem with
Bitcoin, also slumped. Second largest digital token ether fell as much as 11
percent to a four-day low.
© Reuters
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