After
hitting $20,000 six weeks ago, bitcoin plunged below $7,000 on Monday
to its lowest price since November. Tighter regulation, particularly
in China and India, was the main factor weighing on the price.
Other
major cryptocurrencies, including ethereum and ripple, also fell
sharply. Over $60 billion was wiped off the value of the entire
cryptocurrency market in 24 hours, with the market capitalization
falling to $320 billion.
The
cryptocurrency slide comes as Chinese authorities launch their latest
crackdown on cryptos. The central bank of China reportedly said it
would “tighten regulations” on Chinese people’s participation
in overseas cryptocurrency transactions and ICOs.
“Overseas
transactions and regulatory evasion have resumed,” the
regulator was cited as saying by the South China Morning Post. “Risks
are still there, fueled by illegal issuance, and even fraud and
pyramid selling.”
Beijing
has already banned ICOs and shut down domestic exchanges, but that
didn’t solve the issue of people accessing foreign services within
the country.
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