The value of the cryptocurrency dropped by over 10% in the early hours of Saturday morning before bottoming out on Sunday afternoon
Bitcoin prices have recovered some ground on Monday after the price of the original cryptocurrency and multiple other digital coins suffered a ‘flash crash’ over weekend trading.
In mid-morning deals in London, Bitcoin was up 2.8% at US$56,927 following a sharp drop in the early hours of Saturday morning which saw its value decline 10.4% between midnight and 5am to US$54,267.
READ: Bitcoin price takes a hit as Turkey plans ban on crypto payments
The drop in value eventually bottomed out at US$53,797 in early Sunday afternoon, the lowest price for Bitcoin since late March, before rising again overnight into Monday.
The reason for the sudden flash crash in the value of bitcoin is currently unknown, however, there is speculation that some traders may have been spooked by rumours that the US Treasury is planning to charge several financial institutions with money laundering using cryptocurrency, which in turn could raise the spectre of a renewed regulatory crackdown on the sector.
Meanwhile, last week’s announcement of a ban on cryptocurrency payments in Turkey, as well as ongoing rumours that India could follow suit, have also hit market sentiment.