On Monday, amidst a nationwide crackdown against cryptocurrency mining in China, Bitcoin has dropped.
As of 10:05 am on Sunday in New York, the largest cryptocurrency has declined by 5.5 per cent to $34,142 for the fourth time in the past five sessions. The second biggest cryptocurrency, Ether, fell 5.9 per cent to $2,095.
As per the head of over-the -counter and institutional sales at crypto-derivates exchange FTX, Jonathan Cheesman, the droppings have been significant since Bitcoin mines are facing shutdown. He said, “Longer term most see hashrate moving out of China as positive but in the near term may have/has already resulted in inventory sales.”
Edul Patel, the chief executive officer (CEO) co-founder of Mudrex, which is a global crypto trading platform added that Bitcoin started the week above $35,000 and it seemed difficult for it to stay there. It signifies traders being watchful as well as booking profits. Ethereum had started at $2165.45 and even crossed the $2,200 mark before the decline of around $2,000 mark. Usually considered a psychological support level, traders of Ethereum will look closely at the $2,000 support level.
According to an estimate by the University of Cambridge, about 65 per cent of the world’s Bitcoin mining took place in China as of April 2020.
Additionally, a senior market analyst at Oanda Corporation Edward Moya has said that Bitcoin was being pressured by the sudden fall by the Titan token to nearly zero, which is a stablecoin that had drawn the billionaires Mark Cuban as well.
Several regulators have been expressing their concerns over stablecoins along with Mark Cuban encouraging further regulation of the space after the incident.
