Bitcoin Price Plummets Following Chinese Government's Announcement of Stricter Regulations
[Asia Economy New York=Correspondent Baek Jong-min] The Chinese government has expressed a strong determination to crack down on Bitcoin mining and trading activities. As a result, the prices of cryptocurrencies including Bitcoin have plummeted sharply.
According to CNBC on the 21st (local time), the Financial Stability and Development Committee of the State Council of China announced after a meeting chaired by Vice Premier Liu He that it would "strike against Bitcoin mining and trading."
As China took a tough stance by announcing a halt not only to cryptocurrency trading but also to mining, cryptocurrency prices free-fell.
Cryptocurrency prices were not significantly affected the day before despite the U.S. Treasury Department's announcement of a reporting obligation to the IRS for cryptocurrency transactions over $10,000, but they reacted immediately to the negative news from China.
This is interpreted as due to China accounting for 75% of the world's Bitcoin mining.
On that day, Bitcoin prices showed an upward trend until 10 a.m., trading in the $41,000 range, but after the negative news from China, they fell more than 10%, plunging to around $36,000.
Altcoins also weakened across the board. Ethereum traded down 15% at around $2,400, and Dogecoin traded down 15 cents at around 34 cents.
Earlier, on the 18th, three institutions in China?the China Banking Association, China Internet Finance Association, and China Payment and Clearing Association?warned that cryptocurrencies should not be used as they threaten the people's assets and speculative phenomena are recurring, causing Bitcoin prices to plummet vertically.
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