When 2021 began, Bitcoin had an amazing start to the year as it crashed through the $30,000 barrier whilst touching $60,000. In fact, the cryptocurrency did manage to go through that rhythm in March when the price had touched $60,000. But since then, the price has simply gone down.
Last Tuesday saw the crypto dipping under $30,000 for the very first time this year. The drop explains the effect of the Chinese crackdown- as the government did get serious about cracking down on most cryptocurrencies. This led to several users on social media commenting that the price gain at the beginning of the year has since then been neutralized completely.
Bitcoin Plummeting After Government Intervention
Although the price of Bitcoin then rebounded to $34,000, fears haven’t been alleviated yet. Interestingly, the price drop didn’t just affect BTC- Ethereum was similarly affected as its price went to $1,730. DogeCoin dipped by around 17 cents. Since then both of the currencies have come up steadily with Ether’s value at $1,975.
The slump in cryptocurrency numbers second in how many times Chinese crackdowns have affected the sector. Back in May Chinese officials brought forth an old ban that forbade financial firms from aiding and abetting in the selling and mining of cryptocurrency. While it did cause quite a big dip, most of the enthusiasts didn’t care about it- stating that it was never enforced properly.
News from Monday states that the Chinese government would be looking towards enforcing these laws more seriously. Major financial services as well as banks like Alipay have already attended a meeting with the Central Bank of China. The meeting informed the participants about the crackdown in place regarding Bitcoin trading- which came mere days after 26 mining operations were closed down in Sichuan by regional authorities.
