Bitcoin Falls Further as China Announces Ban On Institutions Offering Cryptocurrency Services
Wednesday morning saw Bitcoin fall to a three month low as the cryptocurrency fell below the $31,000 mark. This came as China announced a ban on financial and payment institutions providing cryptocurrency services.
China likewise sternly warned investors against the risks of crypto trading.
The cryptocurrency is headed for its first monthly decline since November 2018, after tumbling down over 50% from its major high of $64,895 recorded back in April 14, 2021.
In the last 24 hours, other crypto assets like Ethereum, lost over 30% on Wednesday bringing it down to $1,850, and Musk’s much-favored dogecoin lost over 50% at one point reaching a low of 21.5c.
Other Factors Effecting Bitcoin
Last week, Musk reversed his decision on bitcoin as a mode of payment for Tesla cars. Further confusion ensued as speculation spread that the electric car mogul has already let go of all his bitcoin holdings.
In addition, Nvidia (NASDAQ: NVDA) reduced hash rates on the new GeForce RTX 3080, 3070, and 3060 Ti graphics cards that begin shipping later this month. This move will make more supplies available for the core gaming audience and potentially discourage miners with the reduced hash rates.
Information for this briefing was found via Bloomberg and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.