Analytics / Forex and Crypto News
China is once again putting pressure on the price of Bitcoin and the crypto market in general. Earlier, the decision of the Chinese authorities forced large mining companies to turn off their equipment and move mining to other countries. This not only lowered the price of Bitcoin, but also significantly reduced its hash rate, since it takes time to transfer mining to other countries.
This week, Deputy Governor of the People's Bank of China, Fan Yifei, said he considers Bitcoin to be a speculative instrument. Therefore, the People's Bank of China will suppress Bitcoin and stablecoin trading in China, as these assets pose a threat to China's financial sector.
Fan Yifei also announced the introduction of new restrictive measures in the crypto area of China in the near future.
Cryptocurrency market analysts agreed that if China continues to impose restrictive measures on Bitcoin, this will inevitably lead to a decrease in the price.
Investors took the news negatively and began withdrawing capital from the cryptosphere this week. This triggered a new decline in the price of Bitcoin. If yesterday the price of Bitcoin was $34850, then today Bitcoin is trading at around $32600.
Bitcoin is trading at dangerously low levels. With seriously reduced trading volumes, this is an alarming sign. If the market is influenced by a small number of open orders, then any news can turn into a large-scale sale.
Along with the price of Bitcoin, the price of other cryptocurrencies began to decline. Ethereum price fell by 10%, Dogecoin also lost 10% of the price, XRP fell by 8%.
Investment bank JPMorgan has released a report on the state of the cryptocurrency market in the second quarter of 2021. The report noted that as a result of a sharp decline in the price of cryptocurrencies in April and May of this year, institutional investors began to massively sell Bitcoins