After rising to $45,026.40 on opening, Bitcoin’s price plunged to $42,370.60 at 11am.
At the time of writing, it had rebounded slightly and was fluctuating at around $42,600.30, or £31,055.83.
This came after the cryptocurrency was trading at $47,251.73 at just before 3am on Monday.
While the cryptocurrency’s market cap stood at around $946.08 billion or £693.45bn on 23 August, it had fallen to 801.92bn on Friday morning.
What did the PBOC say about banning crypto in China?
The Chinese central bank has issued a statement in which it declares that all crypto-related transactions and activities are “illegal financial activities”.
A translation of the statement posted on the PBOC’s website sees the bank claim that the rise of crypto in the country has been “disrupting economic and financial order, breeding illegal and criminal activities” and “seriously endangering the safety of people’s property”.
The statement, signed by the a number of Chinese state authorities and regulators including the Chinese Securities Regulatory Commission, went on to state that online cryptocurrency exchanges providing crypto services to Chinese citizens from overseas were also illegal.
It states that financial regulatory branches of the Chinese State Council will work with cybersecurity and telecommunications authorities to prevent digital currency trading and speculation in order “to maintain economic and financial order and social harmony and stability”