Bitcoin plunged below $40,000 for the first time in more than three months. On Wednesdays (May 19, 2021), Bitcoin tumbled from $45,600 to $39,240, its lowest since early February, and well off the record high of $64,870 seen as recently as last month.
China said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them.
According to Matt Wallace, “Elon Musk: Makes #Bitcoin go up 400 billion in market cap with Tesla accepting it.”
“Elon Musk: Makes #Bitcoin go down 100 billion in market cap with Tesla no longer accepting it.”
The National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China — said “cryptocurrency prices have skyrocketed and plummeted, and cryptocurrency trading speculation activities have rebounded”.
The price fluctuations “seriously violate people’s asset safety and disrupt normal economic and financial order”, said the statement, which was posted to social media by the People’s Bank of China.
According to ABS-CBN news, “Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering as leaders try to stop people from shifting cash overseas.”
