Bitcoin tumbles below $39,000 after China issues warning

Bitcoin tumbles below $39,000 after China issues warning

BEIJING — Bitcoin plunged below $39,000 for the first time in more than three months on Wednesday after China said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them, despite the country powering most of the world's mining.

The comments sent the unit diving more than 10 per cent and dealt it another blow soon after being battered by comments from tycoon Elon Musk and his Tesla car company.

Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering as leaders try to stop people from shifting cash overseas. The country had been home to around 90 per cent of the global trade in the sector.