Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Bitcoin slumps further as China tightens crypto crackdown

06/21/2021 | 06:28pm EDT
Illustration of Bitcoin

LONDON/NEW YORK/TOKYO (Reuters) - Bitcoin tumbled on Monday to a two-week low on China's expanding crackdown on bitcoin mining, as investors grew more uncertain about the future of the leading cryptocurrency.

Bitcoin fell as low as $31,333, a two-week trough, dragging down other cryptocurrencies. It was last down 10.7%, its largest daily percentage loss in a month.

The world's biggest cryptocurrency has lost more than 20% in the last six days alone and was at half its April peak of almost $65,000. Year to date, it remained up about 11%.

Some bitcoin investors were concerned further losses could be in store due to a chart formation known as a death cross which occurs when a short-term average trendline crosses below a long-term average trendline.

China has been tightening its crackdown on cryptocurrencies. On Friday, authorities in the southwest province of Sichuan ordered bitcoin mining projects to close.

Last month the State Council, China's cabinet, vowed to clamp down on mining and trading as part of a campaign to control financial risks.

On Monday, China's central bank said it recently summoned some banks and payment firms, including China Construction Bank and Alipay, urging them to crack down harder on cryptocurrency trading.

"People still react strongly to actions from China that create uncertainty so this is likely to reflect negatively on the bitcoin price," said Ruud Feltkamp, chief executive officer at at crypto trading bot Cryptohopper.

"China is rolling its own cryptocurrency and has every incentive to have as little competition as possible...I think we will see miners leaving China and relocate where there is spare or cheap energy."

Data on mining is scarce. Yet bitcoin in China accounted last year for about 65% of global production, according to data from the University of Cambridge, with Sichuan its second-biggest producer.

Agricultural Bank of China (AgBank), China's third-largest lender by assets, said separately it was following the People's Bank of China's guidance and would conduct due diligence on clients to root out illegal activities involving crypto mining and transactions.

Alipay, the ubiquitous payment platform owned by fintech giant Ant Group, said in a separate statement it would set up a regulator monitoring system targeting key websites and accounts to detect illegal crypto-related transactions.

In other cryptocurrencies, ether, the token used for the Ethereum blockchain, dropped to a five-week low of $1,890. It was last down 14.3% at $1,922.05.

Also on Monday, auction house Sotheby's announced that a rare pear-shaped diamond that is expected to fetch up to $15 million can be bought at an auction next month using cryptocurrencies. It would be the first time a diamond of such size has been offered for public purchase with cryptocurrency.

(Reporting by Tom Wilson in London, Kevin Buckland in Tokyo, and Gertrude Chavez-Dreyfuss in New York; Editing by Toby Chopra, Giles Elgood, Alison Williams and David Gregorio)

By Tom Wilson, Kevin Buckland and Gertrude Chavez-Dreyfuss


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AGRICULTURAL BANK OF CHINA LIMITED -0.76% 2.61 End-of-day quote.-8.10%
BANK OF CHINA LIMITED -1.46% 2.7 End-of-day quote.1.89%
Latest news "Economy & Forex"
11:14aPipeline operator Enbridge beats profit estimates as oil volumes rebound
RE
11:13aDollar higher but still set for biggest weekly loss since May
RE
11:12aDollar higher but still set for biggest weekly loss since May
RE
11:12aWalmart to require masks for retail workers in high-risk U.S. counties- memo
RE
11:10aExchange operator Cboe tops profit view, grows footprint
RE
11:07aBULLARD : Fed should taper this fall, go "fairly rapidly" to end early 2022
RE
11:06aAbbVie expects Botox boom to power annual earnings
RE
11:05aCaterpillar Reports Favorable Currency Impact on 2Q Sales -- Currency Comment
DJ
11:02aP&G forecasts higher annual earnings despite $2 billion input costs
RE
11:00aFactbox-What the U.S. securities regulator wants Chinese issuers to disclose
RE
Latest news "Economy & Forex"