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Bitcoin recovers to $38,000 after plunging 30% in 24 hours

Bitcoin started seeing a major decline after Tesla CEO Elon Musk said his company will no longer accept Bitcoin as a digital payment due to damage it causes to environment. China has also proscribed financial institutions and payment firms from providing services related to cryptocurrency 

Bitcoin has fallen almost 50 per cent from April 12 Bitcoin has fallen almost 50 per cent from April 12

The world's largest cryptocurrency Bitcoin has declined 6.62 per cent to $38,018.85 in the past 24 hours. The world's biggest cryptocurrency saw around a 26.7 per cent drop on Wednesday. It went from $43,602 5.15 pm ET to as low as $31,926 around 9.15 am ET, digital currency exchange CoinDesk data shows.

The digital currency saw some improvement to $38,136.44 on Thursday. The most famous cryptocurrency started seeing a major decline after Tesla CEO Elon Musk said his company will no longer accept Bitcoin as a digital payment due to the damage Bitcoin processing causes to the environment.

Digital currency has fallen almost 50 per cent from April 12. While his erratic approach towards some digital currencies has led to their massive sway, the latest shocker came from China's new ban on crypto transactions.

Also read: Cryptocurrency market crashes! Is it time to sell Bitcoin?

The country has proscribed financial institutions and payment companies from providing services related to cryptocurrency transactions and warned investors against speculative crypto trading. It was China's latest attempt to clamp down on what was a burgeoning digital trading market.

Bitcoin's latest drop downwards was majorly pushed by Musk's late cognizance that cryptocurrencies are "energy-intensive", as in not environment friendly. Tesla's CEO took a lot of flak from crypto fans for specific views and thus re-assessed his outlook on Bitcoin due to its carbon emissions through a tweet. He also shared a chart from the Cambridge Bitcoin Electricity Consumption Index (CBECI) to back his opinion.

Also read: Bitcoin tanks below $40,000; here's why

The news led to a fall in Tesla prices as well, resulting in Musk losing his position as the second richest person in the world. His stance on Bitcoin has been moving prices for the cryptocurrency over the past month. Musk's latest Twitter communications also sparked rumours that Tesla may offload all of its $1 billion worth Bitcoin holdings. However, he later put all speculations to rest stating the company hadn't sold any of its holdings. This bolstered the price of Bitcoin.

Also read: Crypto in free fall: Bitcoin tanks 30% to $31,000, Ethereum loses 40%, Dogecoin down 45%

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