Bitcoin price has fallen down to its lowest level since May due to China’s move to tighten regulations, the CNBC reported on Tuesday.
According to CoinDesk, a media outlet specializing in cryptocurrency, the price of bitcoin fell to $6,558.14 on the same day, the lowest level in about six months. The price has dropped by 3,000 U.S. dollars in one month. Later in the day, it recovered to $7150.79 a bit.
Bitcoin prices rose last month. The price temporarily surpassed $10,000 after Chinese President Xi Jinping praised the advantages of blockchain. And said China should step up its development of blockchain technology.
However, the fact that the People’s Bank of China hinted at strengthening its crackdown on cryptocurrency transactions on the 22nd started to cause prices to fall.
China has imposed strong regulations on cryptocurrency transactions by banning ICOs (Initial Coin Offering) that raise new funds with virtual currencies. It has also beginning to shut down virtual currency exchanges in the country since 2017.
Jeff Dorman, chief investment officer of cryptocurrency asset management company Arca, said in an interview with CNBC that he is having the worst week in cryptocurrency history. And that there is no inflow of new funds to absorb supply.
Not the first fall down this year for Bitcoin
However, bitcoin price has doubled since the beginning of this year. Also it has been on the upward trend since Facebook’s announcement for Libra.
But the upward trend only lasted to September. The Bakkt launch caused Bitcoin’s price to fall down more than $1,000 within a few days. The firm is a Bitcoin future exchange and digital asset platform. Worse, the whole cryptocurrency market saw a down trend since Bitcoin’s dive.
Xi Jinping’s statement indeed pumped its price briefly to $10,000. But it was only there for a few hours. Then it again went through a down trend from around $9,000 to $8,000.
