Bitcoin and other cryptocurrencies are falling as anxiety spreads through the marketplace — this time, after China took additional steps to crack down on the digital coins.
The planet’s most heavily traded cryptocurrency dropped as low as $30,202 per coin first Wednesday after beginning the day around the 40,000 mark, according to data from Coindesk.
Bitcoin then recovered marginally but was down more than 10 percent at about $38,700 per coin around the time of their New York stock market close.
Alongside bitcoin’s autumn Wednesday, many other major cryptos were down. Ethereum plummeted under $2,000 per unit following trading over $3,000 on Tuesday, before reclaiming some of its missing ground.Ether was down approximately 22% at nearly $2,600 Wednesday afternoon. The meme-turned-cryptocurrency dogecoin dropped more than 24 percent of its value.
Bitcoin was dropping this month after Tesla (TSLA) CEO Elon Musk said he was wary of its environmental effect. But a new announcement in the trio of Chinese finance and banking watchdogs appears to have shocked cryptocurrency markets even more.
The agencies stated Tuesday that financial institutions and payment businesses should not participate in any transactions associated with cryptocurrency, nor if they provide crypto-related services to their clientele.
“Costs of cryptocurrency have dropped and surfaced lately, and risky gambling has shrunk back. This seriously harms the safety of people’s property and disturbs normal economic and financial orders,” said the statement from regulators supervised from the People’s Bank of China and the China Insurance and Banking Commission.