Bitcoin continued its tumble after the China Banking Association warned members of risks associated with digital currencies. A week ago, Bitcoin was trading above $55,105 after its price plunged 10% following Tesla CEO Elon Musk's reversal of his stance on the digital currency.
The cryptocurrency king fell below the $32,000 in the mid-morning session on Wednesday.
China's industry association issued a statement warning all of its members to "resolutely refrain from conducting or participating in any business activities related to virtual currencies."
China’s relationship with cryptocurrencies has been a turbulent one with several crackdowns since 2013 affecting the values of the digital coins, including Bitcoin, with ripples felt across the world almost once every bull cycle.
On Tuesday, Chinese regulators banned the country’s financial institutions and payment companies from providing services related to cryptocurrency transactions while also warning investors against speculative crypto trading.
The new restrictions add on to previous bans that have limited the use of Bitcoin and other cryptocurrencies in the country - the first of which can be traced back to 2013.
Now the latest ban comes after a week of decline in values of several cryptocurrencies, including Bitcoin, following a global BTC bull run.
“Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order,” the regulators noted in a joint statement on Tuesday.
The current directive could make it more difficult for people to buy cryptocurrencies in China and may throw more hurdles for miners to exchange cryptocurrencies for Yuan, but some investors say this is part of a “once in a bull cycle ban,” that the country enforces on the digital currency.