Bitcoin slides below $40,000 after China crackdown

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Bitcoin slides below $40,000 after China crackdown

Bitcoin’s volatile week continued on Wednesday. It tumbled below the $40,000 mark to hit a three and a half month low before recovering some ground. The drop came after china said on Tuesday that it’s, banning financial institutions and payment companies from providing services related to cryptocurrency transactions.

As the biggest and best-known virtual money, bitcoin had already been under pressure from a series of tweets from tesla boss, Elon Musk, but the news from China sent it as low as thirty-eight thousand five hundred and fourteen dollars and nine percent fall that took the coin Down around forty percent from a record high hit last month, it is also heading for its first monthly decline since November 2018, rival cryptocurrencies either and Dogecoin also fell Wednesday.

The crypto declines was sparked last week by musk’s reversal on tesla, accepting bitcoin as payment. His subsequent tweets caused further confusion over whether the carmaker had shed its holdings of the coin.

Analysts at JPMorgan said that investors may be shifting from bitcoin back to gold in what they called the steepest liquidation in bitcoin futures since last October.

Source : Youtube