Cryptocurrency prices fell on Wednesday following a statement by the People’s Bank of China that digital coins were not “real currencies” and amid a general market downturn.
The global cryptocurrency market capitalization has fallen nearly 25% in the past day, according to CoinMarketCap.
Bitcoin fell almost 20%, Ethereum lost almost 27%, and Dogecoin fell almost 30%.
In an article posted on the official WeChat account of the People’s Bank of China, the Chinese central bank said digital currencies should not be used in financial markets or in the real economy as a currency, as these are not “real currencies”.
Bitcoin prices have fallen to a lowest for three and a half months As cryptocurrency counterparts such as Ethereum and Dogecoin traded heavily in the red on Wednesday, following a further crackdown on virtual currency markets in China and a wider pullback in risky markets in the United States.
Coinbase Global, the largest cryptocurrency exchange in the United States, fell after its website suffered a crisis to close amid the fall of cryptocurrencies.
The company said Wednesday morning that it “sees issues on Coinbase and Coinbase Pro.”
“We have implemented a patch to resolve the issue and users should no longer have issues signing in to Coinbase and Coinbase Pro,” the company said in a follow-up email.
“The overall impact is that you have to embrace the beat for a greater good in all specifications. Buy the strongest companies, like April 2000, and you should be fine. The vast majority of capital, except maybe from MUSK, the four-letter symbol of Tesla, (rejected) bitcoin as a currency, ”TheStreet founder Jim Cramer said in his Real Money Column Wednesday.
“Tesla should be seen as a drag on the market, as the unruly capital that was full of those with conviction who betrayed them in mid-March 2000.” he added.