Bitcoin Price Pressures Continue as China Clampdown Intensifies

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Created by TradeOr

3rd Party Analysis 22 Jun 2021

Key Takeaways:

  • Digital assets slide Monday as China reiterates its hard stance toward crypto trading
  • Bitcoin loses almost 12%, ether lower by 15%, Dogecoin nosedives 27% on Monday

China Clampdown On Digital Asset Trading Intensifies

The cryptocurrency market took another hit Monday after Chinese authorities increased pressure over digital asset trading and mining. The regulatory crackdown on bitcoin miners intensified alongside a warning to banks and payment companies to restrict any activities related to cryptocurrencies.

Digital asset prices slid significantly yesterday after the People’s Bank of China released a note that stated “virtual currency trading activities disrupt the normal economic and financial orders, breed the risks of illegal cross-border transfer of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety.”

The warning by the China’s central bank came a day after the Chinese government in Sichuan announced it would shut down more than two dozen crypto-mining facilities in the region. As a result, the hashrate of the Bitcoin network has been declining since June 14. Sichuan is the second most-preferred province for mining in China.

In addition, the People’s Bank of China summoned representatives of several state-owned institutions and instructed them to “strictly implement” recent rules and orders from authorities over exposure to cryptocurrencies. The guidelines included taking a more active role in curbing any activity related to crypto trading.

Bitcoin’s Overall Performance

China’s harder regulatory stance on cryptocurrencies exacerbated bitcoin’s performance on Monday. The world’s biggest digital asset slid nearly 12% and ended the session at $32,500. Earlier today, bitcoin’s price continued its descent and reached a low of $31,100. The price has stabilized moderately and is currently hovering around the opening levels of $32,500.

Over the past seven days, only one trading session has been positive for bitcoin. The short-term downfall of bitcoin that started on June 16 has erased over 16% of the asset’s value. For the month of June, the orange coin remains in negative territory, down by 11%.

Other crypto tokens are also in solid decline. Ether slid over 15% yesterday and closed at $1,890, while Dogecoin dropped a staggering 27% to reach $0.21 per coin.

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