Bitcoin Tanks 30% To Near $30,000 As Selling Intensifies Following China's Crypto Warning

Bitcoin reached $30,001.51 amid heavy selling in the morning and was trading at $36,901.54 at 6.20 p.m.

(Representative Image/Getty)

Mumbai: Bitcoin, the world's largest cryptocurrency, fell close to $30,000 on Wednesday, falling more than 30% in the last 24 hours due to a sell-off sparked by China's ban on digital coin transactions and Tesla's halt on purchases of its electric cars using Bitcoins.

According to Coin Metrics, Bitcoin reached $30,001.51 amid heavy selling in the morning and was trading at $36,901.54 at 6.20 p.m. GST on Wednesday. Analysts had previously predicted that bitcoin could fall to as low as $30,000.

Other cryptocurrencies fell as well on Wednesday. According to Coin Metrics, ether on the Ethereum network was down at $2,501.40 at 6.20 p.m. GST. Dogecoin, a meme-based cryptocurrency, dropped nearly 30% at one point, Reuters reported, citing market tracker Coingecko.

The meltdown in the cryptocurrency market has enraged millions of users of WazirX, India's largest cryptocurrency exchange, as the exchange's services reportedly crashed.

"We've received reports that you're facing delays in trading, viewing order book and trade history on WazirX app and website. We're investigating the issue and working on a fix. We'll update you as soon as it's done," said the exchange in a tweet after the users took to social media platform Twitter to raise the issue with the company's official Twitter handle and the exchange's founder Nischal Shetty.

Cryptocurrency prices fell last week after Tesla announced that it would suspend the use of bitcoin to purchase its vehicles due to environmental concerns, fueling speculation that the company was planning to sell its bitcoin holdings. Musk later clarified, however, that Tesla had not sold any bitcoin.

When asked about the steep correction, Avinash Shekhar, Co-CEO of ZebPay said, "A nearly 40% dip in the bitcoin price from its all-time high looks dramatic but is normal in many volatile markets, including crypto, especially after such a large rally. Such corrections are mainly due to short-term traders taking profits. Long-term value investors might call these lower prices a buying opportunity, as MicroStrategy just did. Technical analysts would call this a test of the support level around $40,000. Neither type of investor would say that tweets are the underlying cause. Investors should invest in education first. Research the underlying value of Bitcoin, Ethereum, and other crypto-assets as you might look at a company's information before buying stocks. Use strategies like rupee cost averaging and SIPs to more confidently manoeuvre through volatility and take a long-term view."