Bitcoin Falls Another 10% on China’s Crackdown: Should You be Worried?

Bitcoin News

The biggest cryptocurrency in the world by market cap started off the year with a rally that went on for six months, but since then, it has been a bit chaotic. On Monday, Bitcoin slumped to its lowest level in six months after the Chinese central bank, The People’s Bank of China (PBOC), launched a crackdown on cryptocurrencies.

The PBOC warned that there were risks associated with either trading or issuing cryptocurrencies. Considering the sheer size of the Chinese market, it proved to be a blow to BTC, and the token slumped by as much as 10% to hit $6,738.

Major Issues

It should be noted that Bitcoin is not only the biggest cryptocurrency in the world but also the most traded and frequently records massive volume. Such a development is also likely to have an adverse effect on the wider crypto carpet. The PBOC stated that it is going to clamp down on the growing cases of illegality with regards to cryptocurrencies, a move that could have a long-term effect on the crypto industry.

That being said, the central bank was quick to point out that it is supportive of blockchain technology, and the misgivings about cryptocurrencies should not be confused with an indictment on the former.

>> Altcoins See Red as Bitcoin Capitulation Drags Down Market

Earlier on, China’s stand on blockchain technology and the possibility of the PBOC launching its own crypto token had fired up the crypto space. However, experts are now coming around to the realization that the embrace of blockchain technology did not necessarily mean an embrace of cryptocurrencies in general.

A portfolio manager at the cryptocurrency company NKB Group said as much: “It’s the realization that the positivity over Mr Xi’s blockchain announcement was exaggerated. It may not include Bitcoin at this point.” Due to the sheer size of the Chinese market, the announcement about blockchain had created a lot of optimism in the crypto sphere, but much of this appears to have faded by now.

Featured image: DepositPhotos © Alan

If You Liked This Article Click To Share

Products You May Like

Articles You May Like

52% of Black Americans say homeownership is a mark of success, report finds. But it can conflict with other goals
What will retail look like in five years? Top industry executives share their predictions
Nvidia set to report fourth-quarter earnings after the bell
Insurance giant Swiss Re posts 580% jump in full-year profit, warns consumers about climate costs
Companies — profitable or not — make 2024 the year of cost cuts

Leave a Reply

Your email address will not be published. Required fields are marked *