Bitcoin and other cryptocurrencies extended their losses after a rough last few days.
Bitcoin, the world's largest cryptocurrency, fell by more than 13% Monday.
The slide left Bitcoin nearly 50% down from a high of $64,895.22 per coin back in mid-April.
As of Monday morning, Bitcoin was trading at $32,601 - a $4,899.54 drop from its previous close. By mid-day, Bitcoin, which accounts for more than 45% of the global cryptocurrency market, recouped some of its losses, trading at above $35,000.
Ethereum, the world's second-largest cryptocurrency, also plummeted by more than 17% Monday. The cryptocurrency traded at around $1905 per coin - a $391.31 drop from its previous close. Meanwhile, Dogecoin dropped by 16%, while Binance coin fell by 26% during the same day.
The recent movements in the crypto market can be partly attributed to China's decision to ban financial institutions from offering cryptocurrency products and recent statements made by Tesla CEO Elon Musk.
Musk, whose tweets significantly influence the cryptocurrency market, recently reiterated his support for digital currencies. In his latest tweet, Musk said he strongly supports digital currencies over fiat currencies - his statement sent Bitcoin above $38,000 momentarily before falling once again.
Last week, nearly $1 trillion in market value was wiped out from the cryptocurrency market after Chinese authorities announced that they would be barring cryptocurrency transactions within its borders. Chinese officials said financial institutions will no longer be allowed to offer any financial products linked to cryptocurrency trading.
Apart from China, U.S. regulators also hinted that they may be imposing cryptocurrency restrictions. The U.S. Treasury Department said it is exploring a measure that would require any digital currency transactions over $10,000 to be reported to the Internal Revenue Service.
Last month, Musk sent Bitcoin prices down after he said Tesla would no longer accept Bitcoins as payment. Musk said his company is reversing its previous commitment due to environmental concerns.
The large swings in Bitcoin and other cryptocurrencies over the past few days are nothing new. Analysts have repeatedly warned investors of the unpredictability and volatility of digital currencies.
"Many point to bitcoin's volatility as untenable. Indeed, Bitcoin makes severe and dizzying swings," analysts at RBC Capital Markets said.
