Bitcoin fell below US$30,000 for the first time since January, briefly erasing gains for the year and adding to losses sparked a day earlier when China‘s central bank deepened a crackdown on cryptocurrencies.

The world’s largest cryptocurrency dropped to US$28,600, its lowest since early January, after giving up gains made during Asian hours. Its fall also pressured smaller coins such as ether.

Bitcoin tumbled 11per cent on Monday, its largest one-day drop in over a month, with losses of nearly 30per cent in the last week alone almost wiping out gains for the year-to-date. It was last down 2.3per cent at US$30,896.

The sell-off was sparked by the People’s Bank of China urging China’s largest banks and payment firms to crack down harder on cryptocurrency trading, the latest tightening of restrictions on the sector by Beijing.