A warning by the Chinese government to financial institutions against offering cryptocurrency services allegedly crashed bitcoins.
A joint statement by the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China announced the ban.
The regulators declared that crypto had no real value, adding that its price can be manipulated.
Bitcon investors in many counties are losing money as the fall of the virtual currency hits 30 percent.
Bitcoin and ethereum posted their largest one-day drop since March 2020, with losses close to $1 trillion, according to Reuters.
The global cryptocurrency market capitalization is now about $2 trillion.
According to crypto trading platform Coindesk, Bitcoin is trading at around 40-thousand U.S. dollars this Thursday afternoon.
On Wednesday the world s largest digital currency fell 30 percent for the first time in three months.
It plunged to near 30-thousand U.S. dollars at one point in the day amid a major cryptocurrency sell-off.
Many other cryptocurrencies, including Ethereum and Dogecoin, suffered similar falls. The steep drop follows a joint statement on Tuesday made by three Chinese state-backed organisations the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China.
The three bodies banned banks and payment firms from providing services related to cryptocurrency, such as registration, trading, clearing, and settlement.
What happened to cryptocurrency today? Bitcoin price decline explained
Bitcoin and other coins have seen a massive price drop but there seems to be a small increase today
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Cryptocurrency prices continue to fall to massive lows after a number of events shook the price of Bitcoin and other tokens.
How much is one Bitcoin worth after the price plummets?
The price of Bitcoin has gone down considerably but what is the price?
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Bitcoin has seen a massively turbulent week for those who have invested in the currency.
There have been multiple events in the past couple of weeks which led to the crash of many cryptocurrencies including Bitcoin.