Why has the crypto market crashed? Experts weigh in

China has banned financial and payment institutions from providing cryptocurrency services.

However, according to one expert, it is not just the recent events involving China and Tesla which have contributed to the drop in cryptocurrencies this week.

Gavin Smith, CEO of Panxora, said: "Bitcoin's sharp price drop should come as no shock to the market.

“While many participants will assume the recent sell-off is due to Elon Musk announcing Tesla will no longer accept bitcoin payments, there are wider market characteristics at play here.