The price of Bitcoin and other major cryptocurrencies is collapsing, while China's crackdown on cryptocurrency mining is accelerating. But why has there been a new collapse of Bitcoin, Ethereum and other cryptocurrencies? And what should we expect?
Why has there been a further collapse of cryptocurrencies?
Bitcoin had reached around i dollars 41.000 early last week, and then start dropping steadily throughout the rest of the week until collapse in the early hours of today, Monday 21 June. Currently its value is around i 33.000 dollars.
Also the second most famous cryptocurrency in the world, theEthereum, followed the Bitcoin model. It had risen above $ 2600 earlier in the week, and then plummeted this morning under the 2000 dollars. Same fate for the Dogecoin, which is now worth around $ 0,25. But why are cryptocurrencies so falling?
La China is fighting Bitcoin mining hard, which is the process that essentially creates new cryptocurrency units. The crackdown on cryptocurrencies in China began in May when the government confirmed the ban on transactions. In a joint statement posted on the People's Bank of China WeChat account, banking associations said financial institutions should not accept cryptocurrencies as payment or offer services related to them.
As iNews reports, the announcement did collapse the value of Bitcoin and other virtual currencies and a new update over the weekend further damaged the market. The regions of Sichuan and Inner Mongolia, in fact, have both ordered the closure of all mining operations. In short, the miners were forced to pack their bags and go elsewhere.
What can we expect in the coming days? Well, cryptocurrencies are notoriously volatile, so it is extremely difficult to predict what will happen. The collapses of cryptocurrencies have always stood at reasonable levels, with a volatility that is also quite low compared to the heaviness of the events of the last few days. It is also true, however, that China is the source of most of the world's cryptocurrency trade. About 80% of Bitcoin's global operations take place in China, and Sichuan is its second largest mining region. So there could be further drops.
Source iNews Tagsbitcoin criptovalute Ethereum Yet another hard blow for Bitcoin and Ethereum
