BTC (bitcoin) price crashes anew following an order by the Chinese government for a crackdown on bitcoin mining.
On May 21, Chinese Vice Premier Liu He and the State Council issued an announcement stating that the implementation of more rigid regulation is essential to protect the financial system of the country. The statement further added:
“We should be more alert and look for potential risks. We should crack down on bitcoin mining and trading activities and prevent individual risks from being passed to the whole society.”
Due to this, the BTC (bitcoin) price dropped by 22.94% from its price of $41,252 to $33,552 in a data by Crypto.co.
This is the second time that the price of BTC (bitcoin) underwent a correction for this month alone.
On May 13, BTC (bitcoin) plummeted to $47,029 from its price of $51,377 after Elon Musk announced its removal as payment on purchasing Tesla cars. There were rumors that Musk’s action was actually a retaliation on Barry Silbert and other BTC (bitcoin) proponents who have ganged up against DOGE (dogecoin), his favorite crypto. On May 9, the price of the dog-meme token dropped by more than 50% from its peak price of $0.7398 a day before his appearance on the TV show SNL.
On Wednesday, China implemented a regulation that bans financial institutions and payment companies from providing services related to cryptocurrency transactions. The government has also warned investors against speculative crypto trading. On the same day, a flash crash occurred as the massive sell-off continues. Investors were succumbed to fear by the market’s uncertainty. Due to this, the price of BTC (bitcoin) tremendously dropped to only $30,000.
With the price corrections by the most dominant cryptocurrency, the whole crypto market is now in a bloodbath. Prices of other major cryptocurrencies like ETH (ethereum), LTC (litecoin), BNB (Binance Coin), and yes even DOGE (dogecoin), Musk’s favorite crypto plummeted.
China accounts for more than 60% of the bitcoin network’s collective hash rate and so far the country with the largest number of bitcoin mining farms. With the government’s recent crackdown on mining, how will this affect the crypto market? With Bitcoin’s series of price corrections resulting in a market crash, does it indicate that the bearish season has already started?
BTC (bitcoin) is now at $33,395.70 and has decreased by 12.12% in a 24-hr chart in a data by Crypto.co.