Bitcoin and other cryptocurrencies fell sharply on Tuesday, retreating from near-record highs

The world’s largest digital coin briefly fell below $60,000 during morning trade London time, slipping as low as $58,702 at one point

It later recovered some of those loses and was 5.2% lower at $60,595.44 as of 4:10 p.m. ET, according to Coin Metrics data

Ether, the second-biggest cryptocurrency, fell 6.8% to $4,254.74.watch nowVIDEO05:05Crypto craters as bitcoin pulls back from its high, and the Chartmaster sees a huge move in its future

The impetus behind the price movement was not clear

China’s state planner, the National Development and Reform Commission (NDRC), said during a press conference Tuesday that it will continue to clean up virtual currency mining in the country

Earlier this year, China cracked down on bitcoin mining leading to an exodus of miners. Mining is the energy-intensive process which both creates new coins and maintains a log of all transactions of existing digital tokens 

Beijing is concerned about the amount of energy being used by mining

Mining “causes large energy consumption and carbon emission. It has no active impact to lead industry development or scientific progress,” NDRC spokesperson Meng Wei said on Tuesday, according to a CNBC translation of her Mandarin comments

“Regulating cryptocurrency mining activities has significant meaning in optimizing our industrial structure, saving energy and cutting emission, achieving carbon emission and neutrality goals.”

The NDRC said it will focus on state-owned companies involved in cryptocurrency mining. It also said it is considering imposing “punitive electricity prices” against those participating in cryptocurrency mining activities but paying a residential electricity price

Pullback from record highs

The retreat in cryptocurrency prices also comes as many of them hit all-time highs in November

Bitcoin reached a record high of $68,990.90 on Nov. 10 with ether following suit on Nov. 11.watch nowVIDEO08:42Why does bitcoin use so much energy

“I think we’re seeing a healthy pullback after a 7 week rally from 40K to 69K, which is normal in an upward trend,” Vijay Ayyar, head of Asia Pacific at cryptocurrency exchange Luno, told CNBC via email