Bitcoin price crash: Crypto market dramatically drops amid new fears over China regulation

Andrew Griffin
Monday 21 June 2021 14:09 BST
Comments
Related video: What is cryptocurrency and the technology behind bitcoin and its rivals?

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The crypto market has dropped dramatically amid new fears over China regulation.

Bitcoin fell sharply over the morning UK time, and was matched by other major cryptocurrencies.

Dogecoin saw the most dramatic plunge, losing 8.5 per cent of its value over the last 24 hours. It marks the latest in a difficult week for the meme currency, which has seen its price fall almost 22 per cent over the last week.

>> Follow all the latest updates with The Independent’s live coverage of the crypto market

Ethereum also fell sharply, dropping almost 8 per cent over the last 24 hours.

All of the 10 biggest crypto currencies – excepting those that track the dollar – were down considerably over the last 24 hours, according to tracking website CoinMarketCap.

The latest drops came as China announced that its crackdown on cryptocurrency mining would extend into the province of Sichuan, where crypto projects are being shut down.

China makes up a considerable part of the mining infrastructure that underpins bitcoin and other digital currencies, and so even the slightest suggestion that regulatory or other pressures are coming to the country can lead to wild swings in its price.

Last month, Chinese authorities announced they would be launching a widespread crackdown on cryptocurrencies, which sent the market down by 25 per cent over the course of the day.

Three state-backed organisations – which include the China Banking Association – released a statement that seemed to indicate that they had turned even more negative on digital currencies, and that further crackdowns could be coming.

It said that cyrptocurrencies are not “real”, and that “should not and cannot be used as currency in the market”.

It also warned that consumers should be prepared to lose their holdings, as well as indicating that further regulation could be coming in the future.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in