Ethereum saw prices tumble to massive lows on Wednesday, May 19, in a week when cryptocurrencies were already struggling to maintain momentum. Etherum has registered losses of more than six percent in the past 24 hours, while Bitcoin, Dogecoin, and Cardano have fallen between 0 and six percent.
Prices for digital coins fell on Wednesday after China announced new measures to prevent the use of cryptocurrencies as a means of payment in the country.
Under the ban, financial institutions and payment companies must not offer customers any services that involve cryptocurrencies, such as registration, trading, clearing, and settlement.
Three industry organizations, the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China, issued a statement warning against these transactions.
The statement read: “Recently, cryptocurrency prices have soared and fallen, and speculative cryptocurrency trading has rebounded, seriously undermining the security of people’s property and disrupting the economic order. and normal financial. “
READ MORE: Will Crypto Recover? Bitcoin, Ethereum and Dogecoin down by a third
Why is Ethereum crashing?
Trading platforms are starting to struggle as cryptocurrencies suffer across the board – hitting their lowest values since the start of the year.
The website’s health monitor DownDetector has recorded issues with Binance, Coinbase, Gemini and KuCoun, while online banking apps like Revolut also appear to be affected by the outage.
Many digital coin holders have complained that they cannot “cash out”, while others have expressed disappointment that they cannot “buy the drop”.
China has warned financial firms to stop handling cryptocurrencies, raising fears of an outright ban that could spell disaster for many cryptocurrency holders in the country.
The value of more than 7,000 cryptocurrencies tracked by CoinGecko fell from more than $ 600 billion last week to $ 1.9 trillion, Bloomberg reported.
Mr. Musk also commented on the climate impact of the cryptocurrency which has had a dampening effect on the market.
He said: “We are concerned about the increasing use of fossil fuels for bitcoin mining and transactions, especially coal.