Home Cryptocurrency Bitcoin ends the week with a drop after china warns on digital assets crackdown

Bitcoin ends the week with a drop after china warns on digital assets crackdown

by Serge Shlykov

Bitcoin (BTC), the flagship cryptocurrency, has been on a downward spiral for the past two weeks, after an eye-opening year in 2017. Why? None other than China. The country, which once appeared to be embracing virtual currencies, has turned a cold shoulder on cryptocurrency this year. In January, the People’s Bank of China (PBOC) announced that ICOs were illegal in China as well as in September, when the PBOC barred Chinese bitcoin exchanges from allowing clients to withdraw fiat currencies from their accounts.

Although most of the news and price fluctuations of Bitcoin are attributed to the regulatory policies of different governments, the recent drop in the price of the cryptocurrency is based on the announcement made by the Chinese government that it is going to implement a complete ban on ICOs and impose restrictions on Bitcoin trading.

Bitcoin prices have dropped this week after Chinese regulators threatened to shut down domestic bitcoin exchanges. Although china accounts for the majority of the worlds bitcoin trading, the cryptocurrency is still gaining in popularity despite the crackdown.

Summary of the situation

  • The fate of crypto-currencies and bitcoin in China.
  • All digital coins are falling in value.

Yesterday, the record-breaking digital currency (BTC) fell about 10%. Other digital assets such as Ethereum (ETH) also fell. The second largest cryptocurrency is down 35% over the past seven sessions. Many cryptocurrencies have recorded double-digit declines. Bitcoin has now seen a significant drop of about 25% since last Friday, when it broke through the $42,000 mark. On Wednesday, the price of the giant digital currency was close to $30,000 at the beginning of the week. The week ended with losses for the digital currency, which hit an all-time high after a new warning from Chinese authorities to remove digital assets.

The fate of bitcoin in China

Recently, a major blow was dealt when China’s State Council confirmed its intention to crack down on digital assets. The announcement was not well received by billions of digital asset investors, as it was expected to lead to a further decline in the value of digital currencies. The Chinese government is concerned about the environmental impact of digital assets, particularly the giant cryptocurrency, which consumes large amounts of energy for transactions and mining. In line with these implications, Chinese authorities have banned financial institutions from accepting crypto payments – the country is home to many crypto miners who put a lot of energy into mining digital assets. In recent years, China has sought to combat global warming. Since the massive use of fuel energy is one of the causes of global warming, the country is not inclined to support digital currency.

Impact of Elon Musk’s decision on bitcoin

The CEO of data storage provider Ballet said the new guidelines recently issued by China’s digital asset regulator are taken very seriously. There is talk of going after individual miners of cryptocurrencies. Yet people ask: Will they be able to catch all the miners of digital assets? The CEO of the electric car company (Tesla) first made a big impact on the crypto-currency ecosystem when he banned BTC payments in the company on the grounds that they consume a lot of fuel energy and thus pose a big risk to the environment. Bitcoin supporters are furious with Elon Musk for refusing to pay for BTC, causing the digital currency to plummet from over $40,000 to just over $30,000 in the past week.Cryptocurrency has been on a tear recently, with Bitcoin’s price rising above $6,000 in the last few days. (It hit an all-time high of $6,522 yesterday.) New investors are looking to cash in on the gold rush and many are buying in, but, unfortunately, it looks like the good times might be coming to an end. China recently announced a crackdown on Bitcoin mining operations due to fears that the industry is damaging the environment, and to curb the risk of fraud and money laundering. This is concerning, to say the least, as Bitcoin is mined in China. But the government’s announcement is only part of the problem. The cryptocurrency community is also battling infighting over the future of. Read more about china cryptocurrency news and let us know what you think.

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