Cryptocurrency market tumbles

CHATTANOOGA, Tennessee (WDEF) – The price of bitcoin fell below $40,000 for the first time since February as many cryptocurrencies prices have fallen up to nearly 40%.

Bitcoin was dealt another blow this week as regulators in China announced a crackdown on cryptocurrency payments.

Other cryptocurrencies such as Ethereum and dogecoin also experienced significant losses.

Financial analyst Chris Hopkins said this ruling in China means people in China can’t convert cryptocurrency into cash.

“It essentially stopped transactions in bitcoin at least for the time being. part of the reason for that is China is trying to launch its own cryptocurrency. China always looks out for China, but nevertheless that had a significant impact on the market. $64,000 about a month ago it was down around 30,000 this morning,” said Hopkins.

This comes after Elon Musk reversed course and announced Tesla wouldn’t accept Bitcoin as payment.

Hopkins said stock market drops of 10 and 20 percent or more are known to happen. However, market swings on currency are not suppose to be so volatile. He said this shows that cryptocurrency is still a long way away from being a heavily relied on currency.

Categories: Chattanooga, Local News

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