Following a cryptocurrency trading clampdown threat by China’s central bank, People’s Bank of China (PBoC), Bitcoin has seen losses of more than 10%. Its value has dropped below $7,000.
This announcement has made other cryptocurrencies, such as Ethereum, to nosedive losing at least 12% of its value.
Through a translation, the bank stated: “Once [cryptocurrency trading] is discovered, it will be disposed of immediately, and it will be prevented from happening early.”
Bitcoin price has been on a downward trend the whole of this month, but things got worse off following this revelation by the People’s Bank of China.
According to a Forbes report , cryptocurrency has not been completely banned in China, but the nation made a stern warning as banks were cautioned against working with Bitcoin exchanges back in 2017.
The Shanghai-based central bank has also made a caution against conflating the nation’s interest in blockchain with crypto and Bitcoin.
The bank noted: “Recently, in the process of promoting blockchain technology, virtual currency speculation has shown signs of rising. Investors should be careful not to mix blockchain technology with virtual currency.”
The crackdown threat made on Nov. 22 shows the way the worldwide crypto markets are likely to move based on statements made from China. For instance, in October, Bitcoin increased by more than $ 2000 following China’s President Xi Jinping calls for acceleration in blockchain development. He noted that blockchain application had extended to digital asset trading, digital finance, supply chain management, Internet of Things, and other fields.
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