Chinese Pressure Pushes Bitcoin Below $30,000
Umer Jamshaid 1 month ago Tue 22nd June 2021 | 08:35 PM
Bitcoin fell below $30,000 Tuesday for the first time in more than five months, hit by China's crackdown on the world's most popular cryptocurrency
London, (UrduPoint / Pakistan Point News - 22nd Jun, 2021 ) :Bitcoin fell below $30,000 Tuesday for the first time in more than five months, hit by China's crackdown on the world's most popular cryptocurrency.
It later rebounded slightly to around $30,133 for a daily decline of 7.5 percent.
It has lost about 50 percent of its value since hitting an all-time high of $64,870 in mid April.
"Concerns mount over China's ongoing clampdown and fears that widespread acceptance of bitcoin and other digital currencies will be delayed because of concerns about their environmental impact," noted analyst Fawad Razaqzada at trading site ThinkMarkets.
Chinese mines power nearly 80 percent of global trade in cryptocurrencies despite a domestic trading ban since 2017, but several provinces have recently ordered mines to close as Beijing considers the industry with a critical eye.
Sichuan, a mountainous region in southwest China, is home to many cryptocurrency mines, basically huge centres with racks upon racks of computer processors, owing to the large number of hydroelectric power plants there.
"The cryptocurrency mining community is rushing to get out of coal-fired power plants but losing clean energy sources is extra bitter," he added.
Razaqzada said that "with confidence shaken, it looks like crypto investors are in need of some fresh catalyst to encourage them to step back in -- perhaps something similar to Elon Musk's influence." Musk has essentially moved the market several times since February by tweeting that his automaker Tesla would, or would not, or would accept bitcoin as payment once the virtual Currency gains greener credentials.
Institutional investors have taken an interest as well, as has online payment site Paypal.
Bitcoin's origins date from the 2008 economic crisis, when a nine-page paper called "Bitcoin: A Peer-to-Peer Electronic Cash System" was published by someone called Satoshi Nakamoto, whose real identity is still a mystery.