Bitcoin Prices Drop High After Elon Musk and Bank Of China Announcements

bitcoin

It seems like Elon Musk is taking away everything that he provided following his company Tesla Inc.’s announcement on Feb. 8 regarding how they will start accepting bitcoin as a payment method for Tesla.

Bitcoin which is one of the world’s biggest cryptocurrency has been crashing down and has dropped roughly around 40% from its record of almost $65,000 and was trading around $39,360 as of 6:36 a.m. in London.

This crash happened after Elon Musk announced that his company Tesla would no longer accept Bitcoin as a payment method. After which the bitcoin dropped by almost 15%.

Then on Tuesday, the People’s Bank of China released a statement saying digital tokens will no longer be accepted as a form of payment.

“These huge swings we have seen in crypto really highlight the speculative nature of crypto as an asset,” said Fiona Cincotta, senior financial markets analyst at City Index. “We’ve got Elon Musk driving trades in the crypto world and stirring trouble, not for the first time, and I can’t imagine it will be the last time either.”

With all this happening Bitcoin prices have dropped to what it were earlier in Feb.

It is expected that the prices will drop a bit more as few more countries such as India, Japan and Korea are discussing on the regulation of Cryptocurrency.