Bloodbath in cryptocurrency market post China ban; Bitcoin trading below $39,000 mark

various cryptocurrency on table

China banned financial institutions and payment companies from dealings in cryptocurrency transactions on May 19. The ban led to Bitcoin plunging below $39,000 mark for the first time in more than three months. China has also warned investors against speculative trading in cryptocurrency, despite the country powering most of the world’s mining. Although, China has banned crypto exchanges and initial coin offerings (ICOs), but the country has not barred individuals from holding cryptocurrencies.

The Chinese ban on cryptocurrencies came at a time when Bitcoin was already reeling post comments made by Elon Musk that Tesla Motor company won’t accept payment of cars in cryptocurrency in future.

Cryptocurrency trading has been banned in China since 2019 to prevent money laundering, despite the country being home to 90 per cent of the global trade in the sector.

Meanwhile, the Hong Kong Bitcoin Association tweeted, ‘For those new to Bitcoin, it is customary for the People’s Bank of China to ban Bitcoin at least once in a bull cycle.’