Drastic impact on bitcoin after china ban on cryptocurrencies: Bitcoin plunges to below $30,000

Bitcoin has dropped to below $30k for the first time nearly five months, because of China’s clampdown on the most popular cryptocurrency in the world.

The value of the digital currency fell to around $28,890 and has lost over 50 percent of its value in the past year, after the record-breaking highest of $64,870 in April.

China has advised banks and payment platforms to cease supporting transactions using digital currencies.

Bitcoin plunges to below $30,000

It comes in the wake of an order made earlier this week for the cessation of Bitcoin mining within Sichuan province.

On Monday the central bank of China announced it summoned a number of major financial institutions and payment firms to urge them to take a more aggressive stance regarding the trading of cryptocurrency.

Banks were warned not to provide services or products that include clearing, trading and settlement for transactions using cryptocurrency, the People’s Bank of China stated in an official announcement.

China’s third largest lender by assets and assets, the Agricultural Bank of China, stated that it was adhering to the guidelines of the PBOC and would perform due diligence on its clients to stop illegal transactions related to crypto mining transactions and.

The Chinese Postal Savings Bank also said it will not allow cryptocurrency transactions.

The online and mobile payment platform Alipay is part of the Chinese company that makes financial technology Ant Group, said it would establish an auditing system to identify fraudulent cryptocurrency transactions.

The latest move was taken after the authorities of the province of Sichuan in the southwest region Sichuan on Friday issued an order for Bitcoin miner operations shut down.

Authorities ordered the closing of 26 mines in the last week, in a statement widely shared via Chinese social media platforms and confirmed by an old Bitcoin miner.

Sichuan the mountainous region of southwest China is the home of a number of cryptocurrency mines , which are basically massive complexes with racks and computers due to the huge amount of hydroelectric power stations in the region.

China is responsible for approximately 65percent of the world’s Bitcoin production last year with Sichuan ranking as the second-highest producer, as per research conducted by researchers from the University of Cambridge.

bitcoin down

“Concerns mount over China’s ongoing clampdown and fears that widespread acceptance of Bitcoin and other digital currencies will be delayed because of concerns about their environmental impact,” stated analyst Fawad Razaqzada, a trader on ThinkMarkets.

In the last month, China’s cabinet, called the State Council, said it will take action against trading and mining cryptocurrency as part of a plan to limit financial risk.

Certain analysts have warned of future falls in the value of Bitcoin because of a price chart phenomenon referred to as”death cross. “death cross”, which happens when a shorter-term average trendline is crossed by the long-term trendline.

Other cryptocurrency also dropped because investors were worried about the stricter regulations for digital currency across the globe.

Additionally, auction house Sotheby’s announced that the rare pear-shaped diamond is expected to fetch up to $15 million can be purchased at auction later this month using cryptocurrency.

This is the first time an enormous diamond is sold in a public auction using cryptocurrency.

Also read :- Did China Central bank really declared all crypto-currencies( bitcoin, ether, etc) transactions illegal in china

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