TL;DR Breakdown The fate of cryptocurrencies and Bitcoin in China. All digital currencies record a drop in value. Yesterday the all-time high digital currency (BTC) recorded a drop of about 10%. Other digital assets like Ethereum (ETH) also slipped. The second-largest cryptocurrency recorded a 35% drop over the last seven sessions. Many of the cryptocurrencies … Read more
- The fate of cryptocurrencies and Bitcoin in China.
- All digital currencies record a drop in value.
Yesterday the all-time high digital currency (BTC) recorded a drop of about 10%. Other digital assets like Ethereum (ETH) also slipped. The second-largest cryptocurrency recorded a 35% drop over the last seven sessions. Many of the cryptocurrencies have recorded a fall by double numbers.
Currently, Bitcoin has recorded a significant fall of about 25% since last Friday where its value was over $42,000. On Wednesday, the price of the giant digital currency was almost $30,000 at the start of the week.
The week come to an end at a loss on the all-time high digital currency following another warning by the Chinese authorities on suppressing the digital assets.
Bitcoin’s fate in china
The recent blow came by when the Chinese state council reaffirmed that they intend to crackdown on the digital assets. This statement did not sound well to billions of digital assets investors as it was expected it would lead to a further drop in the value of the digital currencies.
The Chinese government has raised concerns about the effect of digital assets on the environment, more so the giant cryptocurrency that uses a lot of energy in its transaction and mining activity. In line with these effects, the Chinese authority told financial institutions not to accept crypto payments—the country hosts many crypto miners that use a lot of energy to mine digital assets. China, over the last few years, has been trying to fight against global warming. The massive use of fuel energy is one of the causes of global warming, so the country has leant towards not supporting digital currencies.
Effects of Elon Musk decision on Bitcoin
The CEO of storage provider ballet said that the new guidelines that were recently issued by the regulatory authority of China concerning the digital asset would be taken very seriously. There’s talk about going after individual crypto miners. However, the question that people are asking is ‘can they possibly catch all digital assets miners?’
The electric-powered vehicle producing company (Tesla) CEO initially massively affected the crypto ecosystem when he banned BTC payment in the company, saying that they use a lot of fuel energy, thereby putting the environment at high risk.
Bitcoin supporters are mad at Elon Musk for dismissing BTC payments that caused the digital currency to post a massive drop from over $40,000 to slightly above $30,000 in the last week.