In yet another testament to the nascent market’s extreme volatility, cryptocurrency prices tumbled Friday morning after China’s central bank reiterated a sweeping ban on digital asset transactions, prompting some experts to warn the harsh rhetoric may encourage more nations to take similar measures, while others pointed out that prices have quickly recovered from such announcements in the past. 

Key Facts

The value of the world’s cryptocurrencies tanked to a low of about $1.8 trillion by 7:15 a.m. EDT on Friday, falling roughly 9% and losing $188 billion in market value within just three hours of China’s announcement, according to crypto-data website CoinMarketCap.

The stark plunge wiped out virtually all of the gains since a global stock selloff on Monday triggered the crypto market’s worst decline in weeks, with top cryptocurrencies bitcoin, ether and Solana’s sol falling between 6% and 10% apiece Friday morning.

In a Friday note, analyst