Bitcoin dropped nearly 7 percent towards $7,000 Sunday following reports that Twitter will follow Google and Facebook's lead in banning cryptocurrency ads.

It then recovered, rallying $700 in less than three hours Sunday evening.

Twitter is reportedly preparing to ban advertising for cryptocurrencies, according to Sky News.

The reported move would follow similar bans from tech giants Google and Facebook.

The cryptocurrency hit a low of $7,335.57 earlier Sunday before recovering back above $8,000, according to CoinDesk.

Traders were unsure of what was behind the late comeback but blamed another possible bitcoin advertising ban for the weakness over the weekend. Twitter is reportedly preparing to ban advertising for initial coin offerings, token sales, and cryptocurrency wallets globally, according to Sky News. The new policy could roll out in two weeks, the report said.

The move would echo other tech giants restrictions on advertising, and efforts to crack down on cryptocurrency frauds.

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Google announced an update to its financial services policy last week that will restrict advertising for "cryptocurrencies and related content" as of June.

Facebook, the world's second-largest online ad provider, said in January it would ban all ads that promote cryptocurrencies to prevent the spread of what it called "financial products and services frequently associated with misleading or deceptive promotional practices."

"Facebook was previous, but now Twitter is also rumored," said Joe DiPasquale, CEO of BitBull Capital. "Much of crypto demand is retail, so this may negatively impact demand."