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Bitcoin and other cryptocurrencies tumbled over the weekend, extending declines that began earlier this month. While Bitcoin prices recovered on Monday, there may still be more pain to come for cryptocurrency investors if the digital currency crashes like it did in 2017.

Bitcoin continued to be volatile over the weekend. The currency traded below $32,000, a level not seen since January. The weekend move was part of a larger drawdown that brought Bitcoin to as low as $30,202 on Wednesday, down more than 50% from its 52-week high of $64,829.

The most recent bout of selling came as news broke that China will prohibit financial institutions from transactions relating to cryptocurrencies.In the U.S., the Treasury Department said it would like to require businesses to report crypto transfers of at least $10,000 to the Internal Revenue Service in an effort to crack down on tax evasion.

On Monday, Bitcoins price is still 41% below its record high, even after a bounce from Sundays low.

Still, Bitcoins recent pullback is far from its worst selloff. The cryptocurrencys average pullback from a high is 48%, according to historical data analyzed by Bespoke Investment Group data.

If Bitcoin falls as hard as it did in December 2017, when the price fell 83% from its high, investors can expect Bitcoin to reach $11,000.

Brace yourselves.

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com

Read more:
How Far Bitcoin Could Fall If the Selloff Worsens - Barron's