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Bitcoin Falls After China’s Crackdown

Bitcoin welcomed the new year in a particularly powerful way.

Bitcoin Falls After China’s Crackdown iBase Trading.
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Bitcoin welcomed the new year in a particularly powerful way.

Breaking the $30,000 price barrier for the first time. It was a sign of good opportunities, breaking the $60,000 mark by March. But as the saying goes, On Tuesday morning, Bitcoin fell below $30,000 for the first time this year. This follows Monday’s news that China, which has long implemented soft crypto bans, takes its fight against crypto seriously. Observers have flooded social media, indicating that price increases in 2021 have been offset for now.


Bitcoin and Ether Fell

The price has risen to less than $34,000 at the time of writing. But Bitcoin is not the only one. Ether, the second-largest cryptocurrency, fell to its lowest price since late March, at $1,730. DogeCoin fell to 17 cents, a quarter less than its all-time high of 73 cents. Ether was $1975, and DogeCoin was 19.8 cents, both up slightly. For reference, the all-time high of Ether is $4,132. This is the second decline for Chinese regulators this year.

In May, Chinese officials reaffirmed an old ban that bans financial companies from actively participating in cryptocurrency mining and sales. This caused a major recession, but crypto enthusiasts shrugged that the ban was not new. It has had a rare usage since its modification in 2013. But steps taken by China on Monday showed the law would be taken much more seriously. According to the South China Morning Post, major banks and financial services companies like Alipay attended a meeting of China’s central bank calling for action to ban cryptocurrency transactions. This comes days after local authorities ordered the shutdown of 26 mine operations in Sichuan province.

The Effect of Virtual Currency

Virtual currency transactions and speculative activity have disrupted the normal order of the economy and financial [system], the central bank said in a statement on its website. They increase the risks of illegal cross-border transfers of assets and illegal activities such as money laundering.

The decentralized nature of cryptocurrencies is a curse on stability and control pursued by the CCP. China avoids Bitcoin, Ethereum, and other cryptocurrencies, but is working to implement its own digital currency, the yuan.

Bitcoin enthusiasts compare the cryptocurrency to Google, whose stock price has continued to rise since its ban in the People’s Republic of 2010. They say China takes its risks and ignores cryptocurrencies. This is positive for the US in the long run. Dogecoin holders are less calm.

Elon Musk pumped memecoin as it entered the year at sub-cent prices and the ironic internet movement to raise GameStop stock to 10 cents. As well as the movement to push GameStop stock to $1,000. The 10-cent target accomplishment was in April and it completely vanished the following month. Amid the hype surrounding Musk’s potential SNL announcement, memcoin hit 73 cents.

After Musk called Dogecoin a hustle on the show, its value plummeted, a trend that has continued over the past month.

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Nicholas Martinez is passionate about making the crypto world more accessible by bringing the latest news to the space. He has a MBA in Business Analytics and has shown an interest in cryptocurrency from as far back as he can remember.