Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin slumps further as China tightens crypto crackdown

ForexJun 21, 2021 06:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Small toy figurines are seen on representations of the Bitcoin virtual currency displayed in front of an image of China's flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration 2/2

By Tom Wilson, Kevin Buckland and Gertrude Chavez-Dreyfuss

LONDON/NEW YORK/TOKYO (Reuters) -Bitcoin tumbled on Monday to a two-week low on China's expanding crackdown on bitcoin mining, as investors grew more uncertain about the future of the leading cryptocurrency.

Bitcoin fell as low as $31,333, a two-week trough, dragging down other cryptocurrencies. It was last down 10.7%, its largest daily percentage loss in a month.

The world's biggest cryptocurrency has lost more than 20% in the last six days alone and was at half its April peak of almost $65,000. Year to date, it remained up about 11%.

Some bitcoin investors were concerned further losses could be in store due to a chart formation known as a death cross which occurs when a short-term average trendline crosses below a long-term average trendline.

China has been tightening its crackdown on cryptocurrencies. On Friday, authorities in the southwest province of Sichuan ordered bitcoin mining projects to close.

Last month the State Council, China's cabinet, vowed to clamp down on mining and trading as part of a campaign to control financial risks.

On Monday, China's central bank said it recently summoned some banks and payment firms, including China Construction Bank (OTC:CICHF) and Alipay, urging them to crack down harder on cryptocurrency trading.

"People still react strongly to actions from China that create uncertainty so this is likely to reflect negatively on the bitcoin price," said Ruud Feltkamp, chief executive officer at at crypto trading bot Cryptohopper.

"China is rolling its own cryptocurrency and has every incentive to have as little competition as possible...I think we will see miners leaving China and relocate where there is spare or cheap energy."

Data on mining is scarce. Yet bitcoin in China accounted last year for about 65% of global production, according to data from the University of Cambridge, with Sichuan its second-biggest producer.

Agricultural Bank of China (OTC:ACGBF) (AgBank), China's third-largest lender by assets, said separately it was following the People's Bank of China's guidance and would conduct due diligence on clients to root out illegal activities involving crypto mining and transactions.

Alipay, the ubiquitous payment platform owned by fintech giant Ant Group, said in a separate statement it would set up a regulator monitoring system targeting key websites and accounts to detect illegal crypto-related transactions.

In other cryptocurrencies, ether, the token used for the Ethereum blockchain, dropped to a five-week low of $1,890. It was last down 14.3% at $1,922.05.

Also on Monday, auction house Sotheby's announced that a rare pear-shaped diamond that is expected to fetch up to $15 million can be bought at an auction next month using cryptocurrencies. It would be the first time a diamond of such size has been offered for public purchase with cryptocurrency.

Bitcoin slumps further as China tightens crypto crackdown
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (13)
Kaveh Sun
Kaveh Sun Jun 21, 2021 11:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Did we hear this same story over and over again?
Abdul Aziz
Abdul Aziz Jun 21, 2021 7:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ilkay Can
Ilkay Can Jun 21, 2021 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why is China mining restriction affecting the price this much?
Rusty Stone
Rusty Stone Jun 21, 2021 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it seems that reduction in hash rate can/does have a negative impact on price. as miners sell or move rigs they will come back on line over time. where that takes price is far beyond my abilities to say
Freddy Choo
Freddy Choo Jun 21, 2021 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just an excuse for Whales to do distributions collaborately and pushing px to the lowest possible. They will eventually buy back to push for next height.
James Pattison
James Pattison Jun 21, 2021 8:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I still feel safer owning dogecoin over us dollars…
Denny Ly
Denny Ly Jun 21, 2021 8:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
said no billionaire ever...
Darren Hunt
Darren Hunt Jun 21, 2021 8:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
man this chinese crypto fud like 2017 all over again
Edward Lewis
Edward Lewis Jun 21, 2021 8:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market manipulators got to get in their daily dose of "China is banning crypto!" or "OMG what if tether collapses?!"
Pratt Man
Pratt Man Jun 21, 2021 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
crypto is a joke. It will never be a legitimate type of currency unless issued by sovergn country. It's just a game to its players. why would anyone invest their personal wealth into something that fluctuates irrationally? nobody has ever ever ever given me a good reason, when asked.
James Pattison
James Pattison Jun 21, 2021 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its decentralized… why would anyone keep their wealth in a fiat currency determined by some fed bank???
Ilkay Can
Ilkay Can Jun 21, 2021 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it flactuates above some levels. if you bought it when it was 5k or less you have nothing to worry about.
Andrew Lim
Andrew Lim Jun 21, 2021 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If u say invest in crypto is a joke wat abt meme stk like GME, AMC. Any diff?
Marcus Santos
MVSi Jun 21, 2021 7:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am very impressed how week became investors around the world close to chinese. How come China is ruling the crypto world?
Joao Abo-gaux
Joao Abo-gaux Jun 21, 2021 7:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If there is less people mining, shouldnt its value climb ?
Ji Go
Ji Go Jun 21, 2021 7:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not so: each miner represents the infrastructure of the system. It’s not like there are miners in other places ready to absorb this production shortfall. The entire network is down a significant amount of capacity. A good bit of it at the cheapest energy prices, globally. Less transactions + slower speeds + higher fees = price route.
wishful drinking
wishful_drinking Jun 21, 2021 7:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ji Go That is true but only till the next difficulty adjustion which will happen in a few days.
Ji Go
Ji Go Jun 21, 2021 7:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Store of value they said....digital gold they said.
wishful drinking
wishful_drinking Jun 21, 2021 7:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Store of value in the long term. 5 years ago it was a few hundred dollars and 10 years ago it was $1.
Brian Chong
Brian Chong Jun 21, 2021 7:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
5 years ago, the narrative for bitcoin wasn't store of value. the narrative was digital Currency. once this narrative didn't pan out, the narrative changed to store of value. however, you would still have made money regardless of narrative if you bought it 5 years ago.
Stevie Immanuel Ronald Tahalele
Stevie Immanuel Ronald Tahalele Jun 21, 2021 7:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
pretty centralized for a currency that preach decentralization
Sean Livingstone
Sean Livingstone Jun 21, 2021 6:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Crackdown on miners, not on the currency.
Joshua David Hawley
Joshua David Hawley Jun 21, 2021 4:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it is also likely by the end of this week
Eudon Hickey
Eudon Hickey Jun 21, 2021 3:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Seems like Reuters got paid to run this story every week for the last 4weeks already
Jouni Matero
Jouni Matero Jun 21, 2021 3:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Some monetize money, some monetize news.
Bob Collins
Bob Collins Jun 21, 2021 3:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jouni Matero and some are communists.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email