Concerning. Bitcoin and other cryptocurrencies took a nosedive after a crackdown by Beijing weighed on the digital assets market. In particular, after blocking Weibo accounts of a number of influencers.
This is a move viewed by many as signs of a further crackdown on crypto by the Chinese government.
Bitcoin and friends fell Saturday morning after news broke online that a large number of Key Opinion Leaders (KOL) on social media platform Weibo were blocked. This microblogging website is known as the Chinese version of Twitter, and is a place where influencers used to hang out.
Breaking: On Weibo (China's Twitter), a large number of cryptocurrency KOL accounts have been blocked. This is the harshest suspension of crypto in history, and it may be a response to Beijing's crackdown policy. pic.twitter.com/QaYehR3NnV
— Wu Blockchain (@WuBlockchain) June 5, 2021
The blocked accounts are a mixture of these influencers, media outlets, miners, and wallets.
According to a post by Chinese crypto journalist Colin Wu, account not involved in ads of exchanges have not been blocked. This makes this latest development the harshest suspension of crypto in history, and this was a move that did not go unnoticed.
Of course, this is not the first time something like this has been tried. In March, the popular social media platform suspended accounts of a bunch of different crypto exchanges that did business in China.
Reports of the block triggered a simultaneous drop in the price of most major cryptocurrencies, and this drop was repeated again and again throughout the market over the weekend.
This is seen as a wider cleansing, with many industry players coming under the hammer.
It’s not out of the blue, though.
Fears of a government crackdown on cryptocurrencies in China have been weighing on the market for a while now, and the clouds have been hanging over the past several weeks. It is only now that they started to rain.
Let’s see how this pans out.
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