Alert! Bitcoin Drops Below $40K

According to Reuters, China has prohibited financial and payment institutions, such as banks and online payment platforms, from offering cryptocurrency-related services and has "warned investors against speculative crypto trading."In less than a month, the world's largest cryptocurrency by value has fallen from its all-time high. Bitcoin fell below $40,000 on Tuesday, raising its losses to 14 percent in the last 24 hours. For the first time since February 9, Bitcoin has fallen below $40,000.

Bitcoin's 24-hour price ranged from a low of $38,960 to a high of $45,850

Inflows from exchanges are usually interpreted as assets being transferred onto centralized platforms to be sold, with outflows typically signaling crypto assets being moved into cold storage for security or DeFi protocols for yield generation.

The value of other big cryptocurrencies has continued to plummet. Ethereum fell below $3000 for the first time since May 2, but it quickly recovered.

Last week, Musk reversed his position on Tesla accepting bitcoin as payment, followed by other tweets that raised questions about whether the carmaker had sold its bitcoin holdings.

Following an Elon Musk tweetstorm that sent the price of bitcoin tumbling to around $45,000 on Tuesday, bitcoin options traders have piled into bets that the world's largest cryptocurrency will fall below $40,000 by next month.

According to Reuters, China has prohibited financial and payment institutions, such as banks and online payment platforms, from offering cryptocurrency-related services and has "warned investors against speculative crypto trading."