Bitcoin Slides Below $40,000, Ether Tumbles Amid China Restrictions and Elon Musk’s Tweets

The declines in the two most traded cryptocurrencies were sparked last week by Musk's reversal on Tesla taking Bitcoin as payment.

Bitcoin Slides Below $40,000, Ether Tumbles Amid China Restrictions and Elon Musk’s Tweets

Bitcoin fell more than 10 percent after Musk tweeted his decision to suspend its use

Highlights
  • Ether dropped about 15 percent to $2,875.36 (roughly Rs. 2 lakhs)
  • Use of Bitcoin to buy Tesla's electric vehicles highlighted a dichotomy
  • Some Tesla investors have been critical about the way Bitcoin is "mined"

Bitcoin's volatile week-long slide saw it tumble to below the $40,000 (roughly Rs. 29 lakhs) mark on Wednesday as news of further restrictions on cryptocurrency transactions in China added to earlier concerns sparked by Tesla boss Elon Musk's tweets.

Bitcoin (price in India), the world's biggest and best-known cryptocurrency, fell about 9 percent to as low as $38,940.04 (roughly Rs. 28.4 lakhs), even slipping below a key 200-day moving average. It is now down 40 percent from the year's high of $64,895.22 (roughly Rs. 47.3 lakhs) on April 14.

Ether (price in India), the coin linked to the Ethereum blockchain network, dropped about 15 percent to $2,875.36 (roughly Rs. 2 lakhs).

The declines in the two most traded cryptocurrencies were sparked last week by Musk's reversal on Tesla taking Bitcoin as payment, followed by other tweets that caused confusion over whether the carmaker had shed its holdings of the currency.

China's announcement on Tuesday that it is banning financial institutions and payment companies from providing services related to cryptocurrency transactions, coupled with a warning to investors against speculative crypto trading, seemed to have exacerbated the selling.

© Thomson Reuters 2021


What is the best phone under Rs. 30,000 in India right now? We discussed this on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency Prices across Indian exchanges

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