"Dogecoin Drops 26% Amid 'China-Originated' Bitcoin Plunge Shock"

Bitcoin Falls 7% Entering $32,000
No Inflow of Bargain Buying
Additional Decline Possible if $30,000 Support Fails
Dogecoin Plummets 20%

[Asia Economy New York=Correspondent Baek Jong-min] The cryptocurrency Bitcoin has failed to overcome the negative impact of China's mining regulations and has fallen to the $32,000 range without rebounding. The occurrence of a 'dead cross' phenomenon, which signals further decline, has caused the low-price buying momentum that had flowed in during recent dips to disappear.

Graph Showing the Occurrence of Bitcoin Dead Cross

As of 3:20 PM local time on the 21st, according to CoinMarketCap, the price of Bitcoin is $32,600, down 6.9% compared to 24 hours ago.

Bitcoin's price falling below $33,000 is the first time since June 8. Bitcoin entered the $32,000 range around 2:30 AM that day and has not recovered to the $33,000 range for more than 12 hours. Around 7:30 AM, Bitcoin even recorded a price in the $31,000 range.

Concerns about further decline have increased after the dead cross occurred the day before, where the 50-day moving average crossed below the 200-day moving average.

Bloomberg reported that experts expect Bitcoin's entry into the $20,000 range is not impossible. Other foreign media also forecast that if Bitcoin fails to hold $30,000, the dead cross phenomenon will intensify further.

Famous CNBC host Jim Cramer also revealed that he sold all the Bitcoin he held on that day.

MicroStrategy, which issued corporate bonds to concentrate on buying Bitcoin, saw its stock price plunge by 10%. The company announced that it purchased 13,000 Bitcoins for $489 million that day. The total number of Bitcoins held by the company reached 105,085, with an average purchase price of $20,680.

The stock price of cryptocurrency exchange Coinbase is also down 3%.

Altcoins are showing a larger decline compared to Bitcoin.

Ethereum, ranked second in market capitalization, fell 10%, breaking below $2,000. Dogecoin plunged 26%, trading at 20.4 cents. During the day, Dogecoin dropped as low as 18 cents, showing particularly pronounced weakness.

Meanwhile, this sharp decline occurred after China's state-run Global Times estimated that more than 90% of Bitcoin mining farms in China would shut down.

It is also evaluated that the People's Bank of China summoning Alipay officials and some major bank officials on the same day to crack down on cryptocurrency transactions acted as a negative factor.

Jim Cramer explained that the reason he sold his Bitcoin was due to China's unpredictable regulations.