Bitcoin tumbles 11% after China reiterates call for a mining and trading crackdown

• Bitcoin slid as much as 11% Friday, erasing earlier gains after China again called for a crackdown on mining and trading of the cryptocurrency.
• China reiterated its stance in a statement from Chinese Vice Premier Liu He, reports said.
• Bitcoin was recovering from a mid-week selloff before China took renewed aim at crypto mining.

Bitcoin turned sharply lower Friday following reports that China has reiterated its call to restrict mining and trading activities surrounding the world's largest cryptocurrency.

Bitcoin tumbled as much as 11%, to $35, 671.04, at 3:44 p.m. in New York after earlier climbing as much as 5%.

It is necessary to "crack down on bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field," Chinese Vice Premier Liu He and the State Council said in a statement released late Friday local time, according to CNBC.

The statement derailed a recovery in bitcoin after the cryptocurrency suffered a more than 35% sell-off in a matter of days. Its most recent leg down was catalyzed by the People's Bank of China saying digital tokens can't be used as a payment form by financial institutions.

China has previously pledged to crack down on mining operations in a bid to reduce carbon emissions. This week, the government in China's Inner Mongolia Autonomous Region said it had set up a hotline, email, and mail address for the general public to report any outlying crypto-mining operations that are still active in the region.

The country is aiming to reach carbon neutrality before 2060 and reach peak carbon emissions before 2030.

Bitcoin is now on pace for a 24% weekly decline.

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