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According to Forbes, the price of Bitcoin started May at almost $60,000, but has now dropped under $40,000 after China said it was redoubling its cryptocurrency crackdown - instructing banks not to facilitate such transactions while also warning investors to avoid speculative trading.
In fact, the outlet reports that the price of the top five cryptocurrencies - Ethereum, Binance's BNB, Cardano and Dogecoin - are all 'down by double-digit percentages in the last 24 hours', with around $700 billion now wiped from the cryptocurrency market in the past week.
The news comes as China bans financial institutions and payment companies from providing services that are related to crypto transactions, as Reuters reports.
Three industry bodies - the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China - said that under the ban, institutions such as banks and online payment channels must not offer clients any service involving cryptocurrency.
This includes registration, trading, clearing and settlement, they explained.
The regulators said in a statement: "Recently, cryptocurrency 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."
According to Reuters, China has banned 'crypto exchanges and initial coin offerings', but not barred 'individuals from holding cryptocurrencies'.
However, not everyone within the cryptocurrency community feels too concerned by the news, with some shrugging it off as a mere 'pull-back'.
Speaking to Forbes via email, Joe DiPasquale - the Chief Executive of bitcoin and crypto hedge fund BitBull Capital - said: "Bitcoin's pattern over the last 10 years has been meteoric rises followed by pull-backs.
"The trends has been higher highs and higher lows: one year ago today, bitcoin closed at $9,927 while it now sits at about $39,000. While it's certainly fallen from its $63,000 high, that is still a 300 percent rise.
"The fall in price is a natural consolidation period that we see as necessary for the support lines to form for future appreciation. We remain bullish on bitcoin and confident that we will see bitcoin at $100,000 in the future."
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