Bitcoin Price Tumbles Drastically as China Bans Bitcoin
Ethereum and Doge were also affected
China has banned Bitcoin. As a result, Bitcoin price has tumbled drastically. Due to this change, Bitcoin has almost wiped out all the gains it had this year this morning. The gains might even turn to loss if the price reaches USD 29,388,30 (About AUD 37,693). At the time of publishing this article, there was some rebound as the price was USD 33,933 (AUD 44,924). Doge and Ethereum also took a plunge.
Bitcoin price drastically affected after China ban
China’s Central Bank and the People Bank of China have ordered financial institutions like banks and Alipay to stop bitcoin links and put a halt to the trading, clearing, and settling of all bitcoin transactions. This was done to protect financial stability, prevent money laundering, stop crime, and end speculation. The order had come last week, and the consequences were visible this week.
Over the weekend, Bitcoin price had already tumbled when China decided to stop mining operations in Sichuan province. The order instructed electric companies to stop powering the known mines. This move by China was not completely unexpected as it warned of a crackdown in May itself.
As per experts, the fall in Bitcoin price might motivate bitcoin miners to sell now so that they can shift their operations somewhere else. They might move to states that offer ample energy and lenient regulations.
After banning Bitcoin, which led to a tumble in Bitcoin price, China is planning to expand its own cryptocurrency, digital yuan.
Another factor that might impact Bitcoin price further is the fact that the US federal government might regulate Bitcoin too. The Securities and Exchange Commission is planning to issue penalties for crypto scofflaws, the Federal Reserve is looking at launching digital dollars while the Treasury Department is leaning towards a crypto tax.
Experts are also highlighting that the Bitcoin price tumble was quite extraordinary. Bitcoin possibly passed the death cross, which means that the 50-day moving average was beneath the 200-day moving average.
The good news is that though the Bitcoin price has tumbled considerably, the value of the cryptocurrency is still on a high as compared to last year. It hit the lows of USD 5,000 (AUD 6,626) in mid-March 2020. In other news on cryptocurrency, Coinbase’s founder said this about the future of cryptocurrencies and NFTs.
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