Bitcoin drops 10% as China crackdown looms larger
Bitcoin fell almost 10% on Monday as recent volatility in the cryptocurrency market showed no signs of dampening down, with market players citing concerns over China’s expanding crackdown on bitcoin mining in thin liquidity for the losses.
Bitcoin dropped $32,094 to its lowest in 12 days, dragging smaller coins down. It was last down 8.3%, on course for its biggest daily drop in a month.
The world’s biggest cryptocurrency, long plagued by volatility, has dropped over 20% in the last six days alone and is down by half from its April peak of almost $65,000. Still, it has still gained over 10% this year.
Bitcoin’s downward trend comes as a crackdown on cryptocurrencies in China progresses. The southwest province of Sichuan on Friday demanded bitcoin mining projects to close.
The State Council, last month pledged to clamp down on mining and trading as part of a series of measures to control financial risks.
Based on data presented by the University of Cambridge, bitcoin production in China accounted last year for about 65% of global production.