Bitcoin falls again. On Tuesday, the price for bitcoin slipped back to below $30,000. The impact of China central bank’s deepened crackdown on cryptocurrencies seemed to be still latching on bitcoin’s feet.
Quoted from Reuters, bitcoin dropped over 7% to $29,332. This takes back the valuation for the world’s largest cryptocurrency to the lowest record since January 27. Following bitcoin’s fall, smaller coins like ether also took a fall.
Bitcoin’s over 10% fall on Monday caused a nearly 30% loss in the last week alone. By far, this was the largest one-day drop in over a month, wiping out most of the gains for the year-to-date. Previously, the last 6.7% drop for bitcoin took its price to $29,560.
The recent cryptocurrency trading crackdown on banks and payment firms in China is suspected to cause the sell-off. People’s Bank of China (PBOC) has urged tightening up restrictions on cryptocurrency trading.
By far, bitcoin has halved down from its April peak at almost $65,000. Although its year-to-date remains up for around 2%.
Accordingly, Ether also declined over 6% to $1,773, the lowest in a month.
China’s bans on cryptocurrencies and bitcoin tighten, shaking the price
The ban on crypto-related financial services has been ongoing since last month. At least three industry associations have issued a similar ban just a month prior. Market players, though, argued that continuing with tightening the ban might not be as easy as predicted due to the possibility of banks and payment firms struggling to identify crypto-related payments.
Upon this, Anthony Wong of Hong Kong-based crypto firm Orichal Partners said, “We are definitely in the midst of a correction”.
“This time China’s iron-fist ban on crypto seems to be more serious than back in 2017 as the directive came straight from the top.”
Read also: Uncertainty Rose As Bitcoin Price Neared Death Cross
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