Cryptocurrencies

Bitcoin’s Obstacles Mount Amid China Cryptocurrency Warning

Central bank posts statement on official WeChat account
Largest cryptocurrency tumbled below key $40,000 level

WATCH: Bitcoin slumped to its lowest since February after China’s central bank reiterated that cryptocurrencies cannot be used as a form of payment.(Source: Bloomberg)

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By Vildana Hajric and Joanna Ossinger

May 18, 2021 at 2:20 PM UTC

Updated on

May 19, 2021 at 5:04 AM UTC

This article is for subscribers only.

Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China conveyed a statement reiterating that digital tokens can’t be used as a form of payment.

The largest token fell below $40,000 for the first time since early February, dropping as much as 10% to $38,973 on Wednesday and 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.