Bitcoin Dives to a Six-Month Low on China Crackdown

Bitcoin has slumped by nearly a third since late-October as China cracks down on growing cases of illegality involving virtual currencies.

Advertisement
By Reuters | Updated: 23 November 2019 15:02 IST
Highlights
  • Bitcoin fell nine percent to $6,929
  • Its the lowest since May
  • Bitcoin in late October slumped by nearly a third
Bitcoin Dives to a Six-Month Low on China Crackdown

Bitcoin is trading below $7,000, its lowest since May this year

Bitcoin slumped to a six-month low on Friday after China's central bank launched a fresh crackdown on cryptocurrencies, warning of the risks entailed in issuing or trading them. Bitcoin, the world's biggest cryptocurrency, fell nine percent to $6,929 (roughly Rs. 4,97,400), its lowest since May, and was last down seven percent at $7,107 (roughly Rs. 5,10,200). The People's Bank of China's Shanghai headquarters said it would tackle growing cases of illegality involving virtual currencies. It also cautioned investors not to confuse crypto with blockchain technology, the digital ledger that underpins many cryptocurrencies such as bitcoin.

The move came a day after regulators in Shenzhen launched a similar campaign, and came as the PBOC prepares to launch its own digital currency.

Chinese President Xi Jinping said last month that the world's second-biggest economy should accelerate the development of blockchain technology.

Bitcoin, known for its wild price swings, soared over 40 percent in two days after Xi's remarks, with investors betting that Beijing's backing of blockchain and plans for a digital renminbi would accelerate the mainstream embrace of cryptocurrencies.

Advertisement

But since late October bitcoin has slumped by nearly a third.

Jamie Farquhar, portfolio manager at London-based crypto firm NKB Group, said the PBOC statement crystallised a growing sense among crypto investors that China's embrace of blockchain would be unlikely to include cryptocurrencies like bitcoin.

Advertisement

"It's the realisation that the positivity over Xi's blockchain announcement was exaggerated," he said. "It may not include bitcoin at this point."

© Thomson Reuters 2019

 

Also seeCryptocurrency Prices across Indian exchanges

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Bitcoin, China, blockchain
Advertisement

Related Stories

Popular Mobile Brands
  1. Narivetta OTT Release Date: When and Where to Watch This Political Drama Online?
  1. Astronomers Discover 3I/ATLAS, Largest Interstellar Comet Yet Detected
  2. NASA's New Horizons Proves Deep-Space Navigation via Stellar Parallax
  3. AI Designs Ocean Gliders Inspired by Sea Creatures to Boost Underwater Research Efficiency
  4. Narivetta OTT Release Date: When and Where to Watch Tovino Thomas Starrer Political Drama Online?
  5. Kaalidhar Laapata Now Available on Zee5: What You Need to Know About Abhishek Bachchan's Starrer Movie
  6. Sri Sri Sri RajaVaru Now Streaming on Amazon Prime Video: Everything You Need to Know
  7. Hubble Observations Give Forgotten Globular Cluster Its Moment to Shine
  8. Very Massive Stars Blow Away Outer Layers in Powerful Winds Before Black Hole Collapse
  9. Astronomers Capture First-Ever Image of a Dead Star That Exploded Twice in Rare Supernova Event
  10. Climate Satellite MethaneSAT Fails After Just One Year in Orbit
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.