The crash affecting the major coins in the crypto market earlier this week saw the prices of Bitcoin fall drastically for the second time in a month as the cryptocurrency markets throughout the world are gripped by COVID-19 fears. This worsened the impact of a global clampdown on cryptocurrency.
Bitcoin, the largest cryptocurrency in the world, crashed below the $30,000 threshold that investors warned could lead to new lows in the value of the cryptocurrency, as the coin struggled to return to its all-time highs of $64,000.
On Tuesday, Bitcoin crashed by at least 5% in the previous 24 hours. The crash came after warnings that the persistent global crackdowns on crypto mining operations and trading could keep plaguing the market and cause high levels of instability.
The fears that Bitcoin is in a bearish market were, however, soothed by the latest rebound that relates to the launch of a new pro-Bitcoin organization that promotes institutional acceptance of the coin.
Elon Musk appeared together with Twitter and Square founder Jack Dorsey to discuss his holdings of Bitcoin, Dogecoin, and Ethereum and the prospect of other major coins for Tesla payments after their suspension due to environmental concerns in May.
What is The Value of BitcoinToday?
According to CoinDesk, as of Friday, July 23 by 7.30 am, the price of Bitcoin was hovering around $332,622.04 after reaching a new low of $29,368 for July just before 11 am on Tuesday, July 20.
The initial crash in Bitcoin occurred on Tuesday, June 22 when, after fluctuating around the $30,000 threshold, the value of the coin fell to a new recent low of $28,814.75 that afternoon.
Ever since then, the currency has managed to move upwards again, but the price has been stuck between the low and mid $30,000s.
Why Were Bitcoin Prices Down?
Recent crashes have been experienced as a result of a growing crackdown on crypto in China, where the authorities in the southwest province of Sichuan directed all mining projects to close last month.
The State Council, China’s cabinet, vowed to stop all mining and trading as part of their measures to curb financial risks. Although the data on mining is scarce, data gathered from the University of Cambridge reveals that the production of Bitcoin in China last year accounted for about 65% of global production.
The second-biggest producer is Sichuan.
The Central Bank of China stated that it had informed some banks and payment institutions to crack down on crypto trading.
Agricultural Bank of China also said it was adhering to the guidance of the People’s Bank of China and would carry out due diligence on clients to get rid of illegal activities involving cryptocurrency mining and transactions.
The crash in the cryptocurrency market in late June also caused similar fluctuation in the price and availability of Graphics Processing Units because the dumping of these components for mining rigs in China during a crackdown made the price increase throughout the world.
Following China’s move, South Korea also promised to tackle the rise in money laundering that is taking place through cryptocurrency. The Metropolitan Police also announced that it had successfully cracked down a huge UK cryptocurrency money-laundering operation.