Bitcoin falls back below $ 40,000 as it wraps up wild week of trading

A Bitcoin sign is 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 the $ 40,000 level on Friday after Chinese authorities intensified calls to crackdown on mining and trading the cryptocurrency.

The digital coin was last down 10.7% at a price of $ 35,891.2 by 4:05 pm ET, according to Coin Metrics data, on pace for its worst week since March 13. It bounced above the $ 42,000 mark on Thursday as digital currencies attempted to rebound from a big sell-off earlier in the week.

Other cryptocurrencies were in the red Friday, with ether last down 16.9% at $ 2,328.91, XRP off by 17.1% at 98 cents and litecoin falling 18% to $ 172.8. Dogecoin, a meme-inspired crypto supported by Tesla CEO Elon Musk, was down 15% at 34 cents.

Bitcoin’s gains were capped Friday after the US Treasury Department said a day earlier that it would require any cryptocurrency transfer worth $ 10,000 or more to be reported to the IRS.

“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury said.

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