KUALA LUMPUR: Bitcoin extended its losses at midday on Wednesday, falling below the key US$40,000 level.
It earlier fell by 17.7% to US39,194 while Bitcoin cash skidded 17.3% to US$939.75 while Litecoin lost 15.2% to US$260.97, according to the Bitcoin website https://www.bitcoin.com/
Earlier Bloomberg reported Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China reiterated that digital tokens can’t be used as a form of payment.
The largest token fell as much as 2.3% to $42,309 in early Asian trading Wednesday, continuing a weeklong slide sparked by Elon Musk’s back-and-forth comments on Tesla Inc.’s holdings of the coin. Ether, Dogecoin and last week’s sensation, Internet Computer, also retreated.
“This is the latest chapter of China tightening the noose around crypto, ” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender was quoted saying in the Bloomberg report.
Virtual currencies should not and cannot be used in the market because they’re not real currencies, according to a notice posted on the PBOC’s official WeChat account.
Financial and payments institutions are not allowed to price products or services with virtual currency, the notice said.