Bitcoin dips amid China crackdown on crypto mining, trading

China Bitcoin

Talk about having a week! Bitcoin has taken another fall, extending its streak of wild price whirls this week, as China calls for a crackdown on crypto mining and trading.

The call actually came from an official statement that summarized a meeting of a committee of China’s State Council, hosted by Vice Premier Liu He, rather than comments made directly by him. But it was enough to push the digital currency down.

That too, after it showed signs of life yesterday.

This is the statement that was posted on a government website after the meeting of the Financial Stability and Development Committee of the State Council was held:

“We should be more alert and look for potential risks. We should crack down on bitcoin mining and trading activities and prevent individual risks from being passed to the whole society.”

As you can imagine, this is one of the most high-profile warnings against cryptocurrencies in recent years from the Chinese government. The State Council is the chief administrative authority of China that has heads of cabinet level executive departments make national policies.

The result?

Bitcoin fell down below $37,000 on Friday as the top Chinese government body amplified regulatory concerns, and called for a crackdown on cryptocurrency mining. It was trading for as low as $36,800, down from $41,700 during US trading hours.

Essentially, erasing the sizable chunk of the corrective bounce from Wednesday’s low of $30,201.

Goes without saying that the market mood has soured once again after the crypto space spent the past couple of weeks primarily in the red zone. First it was the corporations that started to distance themselves from the cryptocurrency amid a growing chorus about the negative impact of Bitcoin mining.

And now this, straight from the government.

One thing is for sure that it might take a while before we touch the record highs of $64,000 registered on April 14.

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