Bitcoin price decreased after China tightened crypto trading: Bitcoin price decreased by almost 5% on Friday following the announcement by China’s central bank. They are going to crack down on trading in cryptocurrency.
Furthermore, they will prohibit foreign exchanges from offering services for mainland investors.
As a result, the most popular cryptocurrency was down 4.6 percent to $42,874. Other coins that usually are traded in conjunction with bitcoin are also falling. Ether dropped by 8%, while XRP lost 7%.
Additionally, the People’s Bank of China also stated that it would stop banks, payment companies, and internet-based companies from providing cryptocurrency trading. It will also increase the monitoring of risk from the actions.
“Crypto marketplaces are currently in a very fragile condition overall. These types of downswings reflect that, and there’s a sense of anxiety that’s brewing,” said Joseph Edwards, the head of research at the cryptocurrency brokerage Enigma Securities.
However, the shares of blockchain and cryptocurrency-related companies also saw stress due to U.S. Miners listed on the market.
All these companies like Riot Blockchain (RIOT.O), Marathon Digital (MARA.O), and Bit Digital (BTBT.O) sliding between 4.1 percent and 5.1 percent in the premarket trading.
The Chinese-focused SOS fell 1.2 percent while cryptocurrency trading platform Coinbase Global (COIN.O) decreased 2.7 percentage.
Meanwhile, Chinese government officials said that the co is going to crack down on cryptocurrency mining, which ledin the coming year to a massive sell-off of bitcoin and other currencies in the coming year.