Bitcoin extends losses after China curtailed mining and trade

Bitcoin extended losses on Fri.Day after thisNoon, more than 11% fall after this China doubled Low about efforts to prevent speculative and financial risks from cracking Low on Mining and trade the largest cryptocurrency. ChinaThe Financial Stability and Development Committee, chaired by Vice Premier Liu He, was highlighted Bitcoin as an asset, it needs to regulate more. The world’s largest and most popular cryptocurrency traded recently Low 11.59% at $ 35,928 after this Holding the $ 40,000 level for most sessions in Asia and London. Since it hit an all-time high of just under $ 65,000 in mid-April, Bitcoin has fallen by 45%. It is Low about 28% so far this week.

The statement that came Days after this Three Chinese industry associations tightened the ban on banks and payment companies that offer crypto-related services. This was a sharp escalation in the country’s drive to stamp out speculation and fraud in virtual currencies.

Liu is the oldest Chinese official to publicly order a crackLow on Bitcoin. This is the first time the government has explicitly targeted crypto Mining.

“It’s hard to read the real impact of potential actions from Chinabecause these statements are made without specifics, ”said John Wu, president of Ava Labs, an open source financial applications platform.

“However, this statement shows the clear risk for Bitcoin Mining to be so dependent on Chinaand the will of his government. “

Cryptocurrency exchanges operating in Hong Kong must be licensed by the city’s market regulator and may only provide services to professional investors, according to government proposals due later this year.

Earlier on FriDay, ChinaThe state television broadcaster CCTV warned of the “systemic risks” of the cryptocurrency trade in a comment on his website.

Bitcoin is no longer an investment vehicle to avoid risks. It’s more of a speculative tool, ”said CCTV. The addition of the cryptocurrency is a slightly regulated asset that is widely used in black market trafficking, money laundering, gun smuggling, gambling, and drug trafficking.

Rival cryptocurrency ether also came under pressure trade Low about 15% at $ 2,339.

China tried to tackle so many times Bitcoin, Exchange and Mining Since 2013 I think that this shouldn’t be a surprise anymore, ”said Ruud Feltkamp, ​​CEO of crypto trade Bot Cryptohopper.

“I would be surprised if this had a significant long-term impact Bitcoin. ”

ChinaThe last campaign against crypto came after this the U.S. Treasury Department on Thurs.Day called for new rules that would require large cryptocurrency transfers to be reported to the Internal Revenue Service, and the Federal Reserve highlighted the risks cryptocurrencies pose to financial stability.

“The nerves stayed sharpened and I can’t see that the liquidity is lower on SaturdayDays and sunDays as MonDay until Fri.Day, especially after this last week, ”said Jeffrey Halley, senior market analyst at OANDA.

“The weekend headline risk could trigger another bout of prolonged property destruction for the weekend warriors.”

Bitcoin The markets are open around the clock and prepare the ground for price fluctuations at unpredictable times Day Traders who drive these movements.

Reuters

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