Bitcoin price sinks below $40,000 after struggling for months now. The situation is the same with other cryptocurrencies. That follows the warning against cryptocurrency payments by the People’s Bank of China.
The leading cryptocurrency dropped by about 7 percent to $40,257 after bouncing off $38,585, the lowest mark of the day. That leaves BTC 28% lower. Keep in mind that BTC has not hit below $40,000 since February. Ethereum declined by 13%, settling at $2,975. The asset has never been that low since May. However, Ethereum managed to soar to over $4,000. Ripple dropped to $1.48, an 8% decrease.
Media and analysts reported that a China bank posted the crypto warning via its WeChat platform. Late yesterday, the PBOC warned about using virtual currencies. China declared a ban on financial institutions to price and conduct crypto businesses. Jeffrey Halley, an OANDA market analyst, said that the news seems to have gained attention this morning.
People’s Bank of China announced that individuals could not use virtual currency as a payment option since they are not real money. Keep in mind that China launched a crypto crackdown in 2017. As a result, the nation banned exchange platforms. For now, the country prohibits financial institutions from accepting bitcoin transactions.
Keep in mind that China has been planning to launch its digital yuan.
Bitcoin and other digital coins have been struggling for some days. Not long ago, Tesla CEO announced that the firm would not accept BTC transactions in its vehicle deals because of environmental worries. Bitcoin has found it challenging to spike its prices after the Musk statement.
Earlier on the week, bitcoin fell after speculations that Elon Musk would divest the firm’s BTC holding. The CEO denied such claims later on.
On the other news, fintech announced that it is not planning to invest more in BTC after losing $20 million in the crypto last quarter.
Cryptocurrency fans have varying views on the current market situation. Some believe that crypto trading will hit higher records, while others fear that a similar event like 2017 is coming.
What are your opinions on the current cryptocurrency market? Will BTC continue to sink in value? You can share your views below.