Bitcoin’s plummet to below $40,000 mark has been nothing short of a roller coaster ride this past week.
Bitcoin started off last Tuesday at $5,800 and climbed up as high as just over 6k Thursday morning before dipping back down under 5k Friday night and then dropping all the way outside its previous December highs when it reached 4th place in market capitalization around 2 am Saturday morning after struggling for several hours above both 3rd ($22 billion) and 4th ($19b).
Ethereum, one of the most popular and well-known cryptocurrencies in existence has fallen to its lowest price since May 2nd this week.
In a move showing the country’s commitment to cracking down on cryptocurrencies, China has announced that it will no longer allow financial institutions and payment companies from providing services related to cryptocurrency transactions. It warns investors against speculative crypto trading in order for them not get caught up in what they believe is an impending bubble burst.
China took another step towards preventing speculation about virtual currencies by announcing Tuesday that it is going ban financial institutions and payment firms from providing service-related support with regard to any kind of digital currency transaction including Bitcoin (BTC). The announcement came amid warnings issued over speculations regarding “crypto investments”.