Bitcoin tumbles 19% in 1 week

sank as much as 19%, putting the digital currency on pace for its worst week since January 2015, as volatility climbs following a record-setting surge in the price.

After flirting with $3 000 on Monday, the cryptocurrency has retreated to as low as $2 076.16 in intraday trading. Other digital coins are also falling. The decline coincides with a slide in technology stocks that began after a report from Goldman Sachs Group Inc warned that low volatility in the biggest tech stocks may be blinding investors to risks such as cyclicality and regulation.

One of Goldman Sachs’s technical analysts, Sheba Jafari, sent out a note early this week saying bitcoin was poised for a reversal. Analysts at Morgan Stanley wrote in a report on Wednesday that bitcoin needs government acceptance and regulation in order to keep climbing.

A Senate Bill that targets money laundering and terrorist financing has also drawn criticism this week from some bitcoin enthusiasts, who say the proposed legislation is draconian. The Bill includes a section that singles out digital currencies and prepaid access devices.

Many of bitcoin’s cousins, like ripple, NEM and monero, have also struggled in the last week, while the price of ethereum – the second-largest cryptocurrency – has increased 20% as investors speculate whether it can nab top spot. – Bloomberg