Bitcoin is tanking following an announcement from China’s central bank that financial institutions would be banned from providing cryptocurrency services.
In a statement published online, the People’s Bank of China prohibited institutions and businesses from engaging in any form of virtual currency transactions.
The crypto bubble that inflated Bitcoin’s value past $1 trillion and added billions to nonsense digital tokens overnight is bursting.
Bitcoin plunged almost 22% to $35,000, wiping out more than $500 billion in value from the coin’s peak market value. It has erased all the gains it clocked up following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ethereum, the second-biggest coin, sank more tha 40%, while joke token Dogecoin lost 45%.