This week was a rough one for digital coins. The biggest names plunged after a series of bad news cycles, starting with onetime proponent Elon Musk implying on Sunday that Tesla Inc. might have sold its crypto holdings. On Wednesday, China’s central bank reiterated that cryptocurrencies cannot be used as a form of payment. On Thursday, the U.S. Treasury said a new proposal could require crypto transfers of at least $10,000 of cryptocurrency to be reported to the tax authorities.
Bitcoin dipped to its lowest levels since January before rebounding. Litecoin fell as much as 32.5%. Ethereum dropped 26.3%. The selloffs were so extreme that many of the world’s largest exchanges, such as Coinbase and Binance, went down.