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Bitcoin falls below $40,000 as China issues restrictions


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Bitcoin, the world’s biggest and best-known cryptocurrency, has suffered a huge downturn below the $40,000 mark on Wednesday.

This comes as China announced that it is banning financial institutions and payment companies from providing services related to cryptocurrency transactions,

China also issued a warning to investors against speculative crypto trading.

Reuters reports that following China’s anti-cryptocurrency directive, Bitcoin plunged by about 9% to as low as $38,940.04, even slipping below a key 200-day moving average.

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This is just as the cryptocurrency suffered a dip of around 12% less than a week ago, bringing the coin’s price down to about $50,900 (₦20,880,707.00) after Tesla CEO, Elon Musk, announced that the carmaker would no longer be accepting crypto-transactions.

According to Reuters, Bitcoin is now down 40% from the year’s high of $64,895.22 on April 14.

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Another most traded cryptocurrency known as Ether, the coin linked to the ethereum blockchain network, has also dropped about 15% to $2,875.36.