Prices of the world’s biggest cryptocurrency, bitcoin, fell below the $40,000 level for the first time since 9 February after China reiterated its stance that financial and payment institutions should not deal in digital assets and warned investors against speculative crypto trading. This is not the first time when China had issued such a warning. In 2017, it had shut local crypto exchanges and in 2019 the country blocked access to domestic and foreign cryptocurrency exchanges. The latest statement has come from three industry bodies—the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China. This led to the speculation that Tesla has exited its bitcoin holdings of $1.5 billion, adding to the downward pressure on bitcoin.

Source: Mint May 19, 2021 06:11 UTC