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

Andrew Griffin
Monday 21 June 2021 09:09 EDT
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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.

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