Bitcoin Falls 11%, Ethereum 16%, Dogecoin 31% Amid Double Whammy from China (Comprehensive)

Unable to Overcome Negative Factors from China and the Occurrence of Dead Cross

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The cryptocurrency Bitcoin fell to the $31,000 range, unable to overcome the negative impact of China's mining regulations and the occurrence of a death cross. Altcoins such as Ethereum and Dogecoin also experienced heavy sell-offs, suffering declines greater than Bitcoin.

As of 6 PM local time on the 21st, according to CoinMarketCap, Bitcoin is trading at $31,600, down 11.2% compared to 24 hours earlier.

Bitcoin tested the $32,000 support level during the day but extended its losses after 5:30 PM.

Concerns about further declines have increased after the death cross occurred the previous day, when the 50-day moving average crossed below the 200-day moving average.

Bloomberg reported that experts predict Bitcoin entering the $20,000 range is not impossible. Another foreign media outlet also forecasted that if Bitcoin fails to hold $30,000, the death cross phenomenon will intensify further.

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

Compared to the leading Bitcoin, altcoins are showing even larger declines.

Ethereum, ranked second in market capitalization, fell 16% to trade at $1,895. The $2,000 and then $1,900 levels were consecutively broken.

Dogecoin, supported by Tesla CEO Elon Musk, plunged 31% to trade at 19 cents. Dogecoin showed the largest drop among cryptocurrencies on the day. At one point, Dogecoin fell to 18 cents.

Dogecoin's weekly decline rate reached 40%, which is double Bitcoin's weekly decline rate of 20%.

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

It is also evaluated that the People's Bank of China summoned Alipay officials and some major bank officials on the day to instruct them to crack down on cryptocurrency transactions, which acted as another negative factor.