Bitcoin tumbles below $40,000 after China issues warning
Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering
AFP
May 19, 2021
After touching record high of just under $20,000 in late November, bitcoin stalled and even went below $17,000. PHOTO: REUTERS
BEIJING:
Bitcoin plunged below $40,000 for the first time in more than three months Wednesday after China said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them.
The comments sent the unit diving more than 10 per cent and dealt it another blow soon after being battered by comments from tycoon Elon Musk and his Tesla car company.
Bitcoin has plummeted again after China said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them.
The unit dropped below $40,000 for the first time in three months, falling by 10 per cent just days after Elon Musk caused it to plunge by speaking out against its environmental impact.
At one point it fell as low as $38,514, but by 8.55am (GMT) it had recovered to $40,627, still down 5% on the session.
The cryptocurrency has tumbled nearly 40 per cent from a record high of $64,895 hit on April 14. It is also heading for its first monthly decline since November 2018.
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Reuters
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A small toy figurine is seen on representations of the Bitcoin virtual currency displayed in front of an image of China s flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration
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Chinese regulators have tightened restrictions that ban financial institutions and payment companies from providing services related to cryptocurrency, marking a fresh crackdown on digital coins.
Many of the new rules expand on previous restrictions aimed at cryptocurrencies and close loopholes that had allowed some finance and payment firms to continue in the trade.
WHAT ARE THE NEW MEASURES?