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Bitcoin price: Cryptos plunge in response to brutal crackdown from China

Bitcoin and Ethereum plunged after Beijing’s statement, which essentially marks the end of China’s cryptocurrency.

Bitcoin prices plummeted after a brutal crackdown by China.

The central bank of China on Friday said all financial transactions, including cryptocurrencies, are illegal.

It rang the death bell of China’s digital trade after crackdown on volatile currencies.

Bitcoin prices fell 10% to US $ 40,983 in just three hours. It has been stable since then, and today’s price at 7am was $ 43,070.24.

Ethereum fell 12% to $ 2474.34. Since then, it has recovered slightly.

The market capitalization of crypto has decreased from US $ 2 trillion to US $ 1.8 trillion, or about 10 percent.

“Cryptocurrency-related business activities are illegal financial activities,” the People’s Bank of China said in an online statement on Friday.

The central bank said criminals were “investigated for criminal liability in accordance with the law.”

This notice prohibits all related financial activities related to cryptocurrencies, such as trading cryptocurrencies, selling tokens, trading including crypto derivatives, and “illegal financing”.

Central banks have recently become widespread in Bitcoin and other cryptocurrency transactions, disrupting economic and financial order, causing money laundering, illegal financing, fraud, pyramid schemes and other illegal and criminal activity. Said that.

This “has seriously jeopardized the security of people’s assets,” the central bank said.

Cryptocurrency creation and trading is illegal in China since 2019, but more Beijing’s crackdown this year warned banks to suspend related transactions And it closed many of the country’s vast network of Bitcoin miners.

A Friday statement by the central bank sent the strongest signal ever that China was closed to cryptocurrencies.

Bitcoin prices this year are on a roller coaster in a crackdown from China.Also It plummeted when Tesla suddenly stopped using Bitcoin to buy vehicles, Citing fossil fuels and climate change concerns.

Beijing looking for control

Bitcoin and other cryptocurrencies, the world’s largest digital currencies, are difficult to regulate because they cannot be tracked by the country’s central bank.

According to analysts, China fears a surge in cryptocurrency investment and funding in the world’s second-largest economy, and has strict rules on capital outflows.

Cryptographic crackdowns will also open the door for China to introduce its own digital currency already in the pipeline, allowing the central government to monitor transactions.

In June, Chinese officials said more than 1,000 people were arrested for using the profits from the crime to buy cryptocurrencies.

Some major Chinese states Prohibition of operation of cryptocurrency mine Since the beginning of this year, one region has accounted for 8% of the computing power needed to run the global blockchain. This is a set of online ledgers for recording Bitcoin transactions.

Bitcoin’s value fell in May following a warning from Beijing For investors who oppose speculative trading of cryptocurrencies.

“China’s ban on all cryptocurrency trading activities will have short-term implications for currency valuation, but long-term implications may be mitigated,” said Ganesh Biswanat, assistant finance professor at Warwick Business School. Natraji says.

“The ban will shift crypto investment opportunities to other hubs in Asia, including Singapore’s launch of the DBS Digital Currency Exchange earlier this month,” he added.

-Use AFP

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