China’s tight crackdown on cryptocurrencies is leading to a decline in Bitcoin value in the cryptocurrency market. On Monday, Bitcoin reached its two-week low after China’s constant expansion of crackdown on bitcoin mining.
It has led to an alarming situation for bitcoin investors in the market. And they are in doubt about the future of the leading cryptocurrency. China’s decision to put a brake on bitcoin mining and trading has jolted the bitcoin market.
Besides, it has affected the overall cryptocurrency market to a great extent. Bitcoin’s value reached a low at $31,333 which is a two-week low in China’s cryptocurrency market. Last time, it was down 10.7% which is its largest daily percentage decline in a month.
China’s tight crackdown on Bitcoin has also affected other cryptocurrencies as well. Bitcoin has lost over 20% over the last six days and it has reached half of its value in April.
Investors Expect Further Decline in Bitcoin
Many bitcoin investors suspect the further decline in Bitcoin as a death cross hints at a bearish outlook in the cryptocurrency market. Following China’s crackdown on cryptocurrencies, Sichuan authorities ordered the closure of bitcoin mining projects
Beijing loves to control the financial market so it is imposing strict restrictions on cryptocurrency trading & mining in China. The State Council, China’s cabinet vowed last month to put a brake on crypto mining and trading to control financial risks.
Since it is not possible to trace Bitcoin and other cryptocurrencies, China is using other means to regulate the cryptocurrency market. China has strict laws on the outflow of capital because it fears an increase in illicit investments and fundraising.
Open Gates for China to Introduce its Own Cryptocurrency
China has also opened gates for introducing its own digital yuan to gain control over the global financial market. Beijing already eyes on its digital currency and it declared cryptocurrency trading & creation illegal in 2019.
Now, it is imposing stricter rules on Bitcoin mining and trading on a large scale. Recently on Monday, China’s central bank summoned many banks and payment firms to crack down on cryptocurrency trading.
Bitcoin investors are reacting strongly to China’s actions and there is uncertainty in their minds regarding Bitcoin’s future. China started testing digital yuan in March. And it wants to use its own digital currency to carry out cryptocurrency transactions across the globe.
Due to China’s crackdown, many other cryptocurrencies including, ether, the token used for Ethereum blockchain, also saw a decline to $1,890. It is the five-week low value for this cryptocurrency.