On Tuesday, China’s central bank said that they called for the shutdown of a company that is suspected to be providing cryptocurrency services. China plays a major role in the 2021’s crypto market crash. The Chinese government recently banned all the crypto-mining operations in the country. Moreover, they ordered banks “not to entertain crypto-companies”.
BTC’s price dropped after the Chinese crackdown on bitcoin because about 65% of mining of the world’s bitcoin takes place in China. Back in April, Bitcoin climbed as high as $63,729.5 and Chinese miners played a huge part in raising the bitcoin value. Recently, The deputy governor of the Central Bank of China said:
Bitcoin and stablecoins have become speculative tools with potential risks that threaten financial security and social stability, also become payment tools for money laundering and illegal economic activities.
After the response of the Deputy Governor of the Central Bank of China, Bitcoin price went down, dragging altcoins with it. Currently, the BTC price is $32,460.
He opposed the central bank’s digital currency and private digital currency, like Bitcoin, stable currency, etc. Whether they can exist as monetary credit, we are still observing and studying. China would use the Winter Olympics to promote the central bank’s digital currency.
Fred Thiel, CEO of Marathon Digital Holdings and a member of the Bitcoin Mining Council said:
China’s government is doing everything they can to ensure that bitcoin and other cryptocurrencies disappear from the Chinese financial systems and economy.
If the FUD continues, we might see the $28-30k range again.
Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios.
When he is not writing, he is mostly playing video games