Bitcoin rally loses steam after China reportedly bans banks from cryptocurrency business

Bitcoin rally loses steam after China reportedly bans banks from cryptocurrency business

Fell as much as 7% from its intraday high on Tuesday after said China is banning financial institutions and payment companies from the cryptocurrency business. Three Chinese industry bodies released a statement warning investors about the speculative and volatile nature of cryptocurrencies, adding that they "are not supported by real value," according to the report. "Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people's property and disrupting the normal economic and financial order," the statement read. Those three industry bodies were the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China. The statement also said cryptocurrency prices can be easily manipulated, according to the report. China has banned initial coin offerings but does not restrict individuals from holding them. US companies are pouncing on the opportunity in cryptocurrencies, with CashApp and Venmo Banks have and Bitcoin's volatility has been on full display in recent days, as CEO Elon Musk in the cryptocurrency after the EV company Several tweets from Musk also as he questioned its high energy consumption needs.