(Yicai Global) May 19 -- Bitcoin tumbled below USD40,000 after three Chinese financial associations warned investors about the risks of cryptocurrency trading.

Bitcoin slumped 13 percent to USD39,303 in 24 hours, according to data from CoinDesk. It is worth about 40 percent less than an all-time high of USD64,829 in mid-April.

Virtual currencies are not supported by real assets so their pricing can be very easily manipulated, the China Banking Association, the National Internet Finance Association of China, and the Payment and Clearing Association of China said in a joint statement issued yesterday. Traders should be aware that those who lose money are not protected by Chinese laws, they added.

In September 2017, the Chinese government banned cryptocurrency exchanges from operating in the country, but individuals can still trade such assets via overseas platforms.

The associations also reminded investors about the illegal nature of digital currency trading in the country, excluding the central bank’s own e-yuan.

Bitcoin’s price has been fluctuating after celebrity endorsements and subsequent reversals. On May 12, Tesla Chief Executive Elon Musk withdrew the US carmaker’s policy of accepting payments in the mainstream virtual currency, citing environmental concerns related to crypto mining.

Editor: Emmi Laine, Xiao Yi