Bitcoin tumbles to almost $30,000 on China warning

Bitcoin tumbles to almost $30,000 on China warning

BEIJING: Bitcoin plunged by 30 percent on Wednesday after China signalled a new crackdown on the cryptocurrency and Tesla head Elon Musk sent mixed signals about his car company’s use of the unit. The virtual currency fell to almost $30,000 — less than half the record value it reached last month — before climbing back over $33,000. It was still above its level at the start of the year. 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 percent of the global trade in the sector. On Wednesday, authorities 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. In a statement, three state-backed industry associations said: “Cryptocurrency prices have skyrocketed and plummeted, and cryptocurrency trading speculation activities have rebounded.” The price fluctuations “seriously violate people’s asset safety and disrupt normal economic and financial order,” said the statement posted to social media by the People’s Bank of China. The notice warned consumers against wild speculation, adding that the “losses caused by investment