Bitcoin falls to $30,066, the total value of the cryptocurrency industry falls by approximately $1 trillion.

The rapid drops followed China’s decision to prohibit financial and payment institutions from offering cryptocurrency services.

On Wednesday, bitcoin and ethereum experienced their biggest one-day drop since March of last year, with drops in the cryptocurrency sector’s market capitalization approaching $1 trillion.

After China barred financial and payment institutions from offering cryptocurrency services, prices plummeted. Bitcoin fell to $30,066, its lowest level since late January.

It was last trading at $33,502, down 22%. The most common cryptocurrency has lost the most in a single day since March 2020. Ethereum has also dropped to $1,850, its lowest level since late January. It was last trading at $2,439, down 28%. The one-day losses in Ethereum were the highest since March of last year. Bitcoin, the world’s most famous cryptocurrency, had already been under pressure following a series of tweets from Tesla CEO Elon Musk, but the news from China sent it plummeting to $36,250, a 15% drop in one trading session.

The cryptocurrency has lost 40% of its value since hitting a high of $64,895 on April 14. It’s also set to fall for the first time since November 2018. Other crypto assets were hit hard by Bitcoin’s downturn, with Ether, the coin connected to the Ethereum blockchain network, falling as much as 28 percent to $2,426 on Wednesday. It takes the week’s losses to 40% after the stock reached a new high on May 12th. According to market tracker Coingecko, meme-based dogecoin has also fallen, losing nearly 30% at one point.

In pre-market trading, shares of cryptocurrency exchange Coinbase fell 5%. The value of Coinbase’s stock has nearly halved since it peaked on the day of its direct listing in April.

Musk’s reversal on Tesla accepting bitcoin as payment caused cryptocurrency price declines last week. His subsequent tweets added to the uncertainty about whether the automaker had sold its coin holdings.

Selling was exacerbated by China’s announcement on Tuesday prohibiting financial institutions and payment companies from providing services related to cryptocurrency transactions. China has also cautioned investors against engaging in speculative cryptocurrency trading.

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