Bitcoin tumbled below the 40,000 mark on Wednesday hitting a 312 month low and dragging down other digital coins after China imposed fresh curbs on transactions involving cryptocurrencies.
Bitcoin, the biggest and bestknown cryptocurrency, had already been under pressure from a series of tweets from Tesla boss Elon Musk but the news from China sent it as low as 38,514, for a 9 fall.
The coin is now down 40 from a record high of 64,895 hit on April 14. It is also heading for its first monthly decline since November 2018.
Bitcoins moves hit other crypto assets too, with Ether, the coin linked to the ethereum blockchain network, falling 15 to 2,875.36, while memebased dogecoin tumbled 18, according to market tracker Coingecko.
Frankfurtlisted shares in crypto exchange Coinbase slumped 6, having already dipped below their direct listing price of 250 earlier in the week.
The crypto declines were sparked last week by Musks reversal on Tesla accepting bitcoin as payment. His subsequent tweets caused further confusion over whether the carmaker had shed its holdings of the coin.
Selling was exacerbated by Chinas announcement banning financial institutions and payment companies from providing services related to cryptocurrency transactions. It also warned investors against speculative crypto trading.
Cryptowatchers predicted more losses ahead, noting the fall below 40,000 represented a breach of a key technical barrier which could set the stage for more selling.