Bitcoin Plunges After China Crackdown

Bitcoin Plunges After China Crackdown

The price of Bitcoin continued to plummet after China cracked down on cryptocurrencies.

On Wednesday, the price fell below $34,000 (£24,030) for the first time in three months. The drop occurred after Beijing banned banks and payment firms from providing crypto-currency transactions. This fall follows the Bitcoin plunge of more than 10% last week after Tesla announced it would no longer accept the currency.

In 2019, China made cryptocurrency trading illegal to stop money laundering. However, citizens are still able to use Bitcoin online.

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On Tuesday, the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China issued a notice to consumers, stating that they would have no protection if they were to have losses resulting from crypto-currency investment ventures. They added that recent fluctuations in crypto-currency prices “seriously violate people’s asset safety” and are obstructing the “normal economic and financial order.”

Neil Wilson of Markets.com fears that China putting pressure on the crypto-world may motivate other countries to do the same.

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