Bitcoin is deepening the loss at a rapid pace. The virtual currency lost up to 30 percent, only to rise slightly afterwards. The dive follows a warning from Chinese banking federations that cryptocurrencies are not real money that can be used to pay. Earlier, Tesla’s Elon Musk nibbled on the value of bitcoin.
Bitcoin’s value has fallen by more than 12 percent in the past 24 hours, according to CoinMarketCap. That website monitors various platforms on which cryptocurrencies are traded. The price of bitcoin, the largest crypto currency, fell below $40,000 for the first time since early February. In mid-April, a bitcoin was still worth more than $ 60,000. Encjin crypto is well known in crypto.
Bitcoin’s depreciation came after the Chinese central bank warned that bitcoin and other cryptocurrencies are not real money with which to pay. Analysts said Beijing’s statement did not include new regulatory steps, but the decline in bitcoin’s value followed. Vechain VET is well known in crypto.
The price of bitcoin also fell sharply last week after Elon Musk announced that his car factory Tesla had stopped accepting payments in bitcoin for environmental reasons. In February, Tesla announced that it would be possible to buy an electric car from Tesla with bitcoins.
The European Central Bank also contributed by comparing the rise of crypto coins with the tulip mania in the Netherlands in the 17th century. So many signals at once were clearly a trigger for many investors to sell their bitcoins and other cryptocurrencies.