ISLAMABAD – Many of the top cryptocurrencies including Bitcoin, Ethereum, and Dogecoin plunged in price after regulators in China announced a crackdown on cryptocurrency payments.
The price crash took Bitcoin below $40,000 for the first time since January and was accompanied by other leading cryptocurrencies including Ethereum, Cardano, and dogecoin which all saw heavy losses.
Following Tesla’s announcement to not accept Bitcoin as a payment method, the news of the Chinese crackdown further panicked the dealers.
As per the latest updates, all financial dealers including banks will not be allowed to deal in any cryptocurrency services, including trading however the new regulations do not prevent individuals from holding these cryptocurrencies.
Trading in cryptocurrencies has been restricted in China to prevent money laundering, as leaders try to stop people from shifting cash overseas. The country is said to be home to around 90 percent of the global trade in the crypto sector.
Reports suggest that the crypto market lost close to $1 trillion in less than 24 hours before recovering late at night.
On Wednesday, Bitcoin recovered a bit following tweets from Tesla owner Elon Musk that featured a diamond and hands emoji, taken as a signal that the company had not sold off its bitcoin holdings.
Tesla has 💎 🙌
— Elon Musk (@elonmusk) May 19, 2021
Bitcoin from the start has seen sharp fluctuations in prices and in mid-April, the value surged to a fresh record high of more than $63,000.
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