Bitcoin crash: What’s causing the price of bitcoin to plummet again again? The ban on cryptocurrency in China is explained.
BITCOIN has had another hard day today, adding to months of market oscillation as a result of rising volatility. What is causing the price of Bitcoin to plummet once more?
Bitcoin has lately suffered another setback, falling 10% in the last 24 hours. The move comes amid additional doom and gloom for the market as a whole, as DOGE and Ethereum both faced a number of challenges last week. However, whereas previous issues arose as a result of normal volatility, Bitcoin’s recent problems have arisen as a result of Chinese actions that could be problematic for the currency.
China, for example, is now the finest proving ground for Bitcoin, being among the top 20 countries for cryptocurrency usage.
Every year, billions of dollars in trading capital leave the country, and the figures have recently risen.
The Chinese government is well aware of this, having identified merchants who use loopholes to circumvent capital regulations.
Some people have shifted money abroad and used official quotas to buy cryptocurrency while making other transactions.
Authorities have threatened to crack down on anyone who take advantage of the system, prompting the current decline.
On Monday, the country’s leaders said that representatives from the country’s most important banks had been called to restate a ban on providing services to cryptocurrency traders.
Representatives were reminded of government-imposed rules for Chinese banks.
The People’s Bank of China (PBOC) congratulated the Industrial and Commercial Bank of China Ltd., the Agricultural Bank of China Ltd., and the payment provider Alipay, while also reiterating its prohibition on crypto-related transactions.
The PBOC asked attendees to thoroughly monitor their clients’ accounts for any crypto transactions that are prohibited by their policy.
The action sent shockwaves through the market, resulting in a two-figure decline in Bitcoin.
According to Coindesk, Bitcoin has lost 10.51 percent in the last 24 hours.
BTC is presently trading at $32,097.14 (£23,034.86) on the site, down from $34,485.92 (£24,749.20) earlier today.
The PBOC stated in a statement that cryptocurrency trading undermines the “financial order.”
It also “sows the seeds of illicit activity, such as illegal asset transfers and money laundering, and puts people’s wealth at risk,” according to the bank.
China’s current move isn’t the first time it’s vowed to ban cryptocurrencies.
Following a similar announcement in March, numerous tokens plunged.
China has been a lucrative location for cryptocurrency fans in the last year or two.
Around $17.5 billion in digital assets would be transferred from the country to other countries by 2020. “Brinkwire News in Condensed Form.”