After the People’s Bank of China apparently warned against using digital currency as payment, the price of bitcoin fell below $39,000 for the first time in months, and other cryptocurrencies fell as well. Bitcoin BTC USD, -7.01 percent fell over 7% to $40,275, bouncing off a 24-hour low of $38,585, the lowest level in a month that has seen the No. 1 cryptocurrency fall by 28%. Since early February, Bitcoin has not traded below the $40,000 mark. Ether ETH USD, -14.44 percent fell 13 percent to $2,975, a level not seen since early May, right before the cryptocurrency rocketed to a record high above $4,000. Ripple XRP USD, dropped around 9% to $1.45.
The world’s largest and best-known cryptocurrency, Bitcoin Price (in India), plummeted over 9% to $38,940.04 (approximately Rs. 28.4 lakhs), even falling below a critical 200-day moving average. It’s now down 40% from its all-time high of $64,895.22 (approximately Rs. 47.3 lakhs) on April 14.
Bitcoin Tumbles, Ether Slides after China Restrictions and Elon Musk’s Tweets
Bitcoin’s wild week saw it fall below $39,000 (approximately Rs. 29 lakhs) on Wednesday, as reports of new Chinese limitations on cryptocurrency transactions added to earlier worries spurred by Tesla CEO Elon Musk’s statements The declines in the two most traded cryptocurrencies (BTC & ETH) were sparked last week by Musk’s reversal on Tesla taking Bitcoin as payment, followed by other tweets that caused confusion over whether the carmaker had shed its holdings of the currency.
China’s announcement on Tuesday that it is banning financial institutions and payment companies from providing services related to cryptocurrency transactions, coupled with a warning to investors against speculative crypto trading, seemed to have exacerbated the selling. Ether Price (in India), the coin linked to the Ethereum blockchain network, dropped about 16 percent to $2,805.47 (roughly Rs. 2 lakhs).