(CMR) The world's cryptocurrency market crashed Wednesday after Bitcoin lost nearly a third of its value, dropping to its lowest level this year.
RT Business reported that Bitcoin lost its value after news of the restrictions on digital currency transactions in China sparked a major selloff in the cryptocurrency market.
The world’s number one digital asset was trading around $30,000, more than 30% lower than the previous day.
The plunge came after Chinese authorities banned financial institutions and payment firms from providing services connected to cryptocurrency transactions, RT Business reported.
RT business also reported that the restrictive measures, coupled with a warning to investors against speculative crypto trading, are believed to have exacerbated the selling triggered by Elon Musk’s reversal on Tesla accepting bitcoin as payment. The announcement followed several tweets raising uncertainty over whether the electric automaker had sold its $1.5 billion holdings in the cryptocurrency.
Other cryptocurrencies also saw a massive drop in value, with ether dropping nearly 34% to below $2,300. Dogecoin, a meme-based cryptocurrency that has been pushed by Musk, declined nearly 50% to around $0.24, RT Business reported.
The value of the entire cryptocurrency market consequently suffered a loss of hundreds of billions of dollars, dropping over 30% on Wednesday to around $1.4 trillion, according to CoinMarketCap.