Cryptocurency Bitcoin on May 19 is now down by almost 20 percent over the past 24 hours and down to $36,900. According to reports, another cryptocurrency Ethereum is also down by 26 percent.
Earlier in the day, the world’s biggest and best-known cryptocurrency — Bitcoin — fell about 9 percent to as low as $38,940.04 and slipped below a key 200-day moving average.
Among other details, the other coin linked to the ethereum blockchain network Ether dropped about 15% to $2,875.36, reported news agency Reuters.
Bitcoin drops below $40,000 – All you need to know about how and why
The following decline in the two most traded cryptocurrencies were sparked last week by Elon Musk’s reversal on Tesla taking bitcoin as payment, followed by other tweets that caused confusion over whether the carmaker had shed its holdings of the currency.
Apart from this, China’s announcement on Tuesday that it is banning financial institutions and payment companies from providing services related to cryptocurrency transactions, coupled with a warning to investors against speculative crypto trading, seemed to have exacerbated the selling.
What lies ahead of the meteoric rise of cryptocurrency?
On May 19, European stock markets sank on soaring inflation numbers, while bitcoin took another tumble after China’s central bank said cryptocurrencies cannot be used for payments.
In another news, cryptocurrency Ethereum co-founder Vitalik Buterin recently made an announcement of burning 90 percent of his Shiba Inu holdings and donating the rest, following which the investors of crypto coin are in a dilemma. Meanwhile, Buterin had said that burning and donating the coins was the only option.
Explained | Ethereum co-founder Vitalik Buterin destroys 90% of his Shiba Inu holdings; here’s what it means
Earlier, Buterin was given 50 percent of all Shiba Inu tokens by the coin’s creators. Regarding his decision to burn the digital currency, Buterin had cited that this was the only method through which he could avoid his transactions in Shiba Inu being interpreted as actions.