Bitcoin plummeted more than 10% on Monday. After a crackdown in China against cryptocurrency mining took hold. And, it will be extended with the prohibition of this activity in a province of the southwest.
Bitcoin had surpassed $ 41,000 earlier last week following a tweet from Tesla founder Elon Musk. In which he reiterated that the electric vehicle company will again accept payments in that cryptocurrency if miners start using clean energy. However, the attitude of the Chinese authorities has again weighed down the price of the cryptocurrency. The price of Bitcoin is quoted at USD 32,600 according to our internal Crypto Online tool, recording a drop of -8.35%, at the time of the editing of this article.
However, it is important to note that mining in China fuels almost 80% of the world’s cryptocurrency trade. Despite the ban since 2017 to trade with them in the country and the closure of this activity in several provinces.
In a statement, the Agricultural Bank of China, the country’s third-largest lender, explicitly stated that its services should not be used for cryptocurrency-related transactions.
«The Agricultural Bank of China issued a notice that they will not engage in virtual currency transactions and related activities». Reported, China-oriented news resource 8btc, translating the original document for social media users.
«The accounts of clients participating in such activities will be closed and customer relationships terminated».
The result of its publication was instantly recognizable. Bitcoin’s price plummeted more than $ 1,000 in minutes before rebounding to $ 33,000.
Closure of 26 mines recorded in Sichuan province
According to analysts, the regional governments of the Chinese provinces in which Bitcoin mining is most developed have given orders to close facilities.
Last week authorities in Sichuan province ordered the closure of 26 mining centers. According to a notice spread on social media and confirmed by a former Bitcoin miner. «There have been working groups that have come to check … making sure that we shut down operations and remove the machines», say.
The price of Bitcoin plunged to $ 31,000 after reaching a record close to $ 65,000 in April. Partly because of Beijing’s repressive measures.
The notice orders power companies to stop supplying electricity to all cryptocurrency mines by Sunday. Sichuan Province represents one of the largest mining bases in the country.
China says banks should block crypto transactions
As has been announced, a crackdown on mining began in China. Consequently, banks should not provide products or services such as trading, clearing and settlement of crypto transactions. The People’s Bank of China also said in a statement.
They should also make sure to identify the capital accounts of virtual currency exchanges and over-the-counter dealers. They should also cut the payment link for transaction funds in a timely manner, he said.
The central bank noted the exaggeration surrounding transactions in virtual currency. In this regard, it identified them as a risk of illegal cross-border transactions and money laundering. As well as, a challenge to the economic and financial order. For this reason it is presumed to have initiated, more strongly, repression in China against the mining of cryptoassets.
MicroStrategy buys another USD 489 million Bitcoins
MicroStrategy reported that it bought about 13,005 bitcoins for $ 489 million in cash at an average price of about $ 37,617. Including fees and expenses.
The business intelligence software company now owns about 105,085 bitcoins, which were acquired for a total of $ 2.74 billion. MicroStrategy said that its newly formed subsidiary, has about 92,079 BTC from the total treasury.
Likewise, CEO Michael Saylor has made the acquisition of bitcoins a second term for his 32-year company. His other business is software development.
The purchase follows MicroStrategy’s collection of $ 500 million from the sale of debt to fund more purchases of bitcoins. As the company subsequently filed an application to sell $ 1 billion in shares to help buy even more of the leading cryptocurrency, we are likely to see another purchase soon.
Of interest…
- Bitcoin transfers increased in El Salvador. Small Bitcoin transfers from El Salvador increased significantly, reaching almost four times the number in May compared to the same month last year. This was reported in an article by Forbes Colombia, on June 15, although they clarified that this still represents a small amount compared to remittances sent in dollars.
- Spanish Consumer and User Organization warns about risks of cryptocurrency scams. According to the business publication, the OCU also pointed out that the cryptocurrency market is “very complex and opaque and has little regulation or official supervision.” In this regard, they warned that it has become a favorable ground for scammers.
- Cryptocurrencies are the most dangerous investment, says the governor of the Bank of Russia. The governor of the Bank of Russia has maintained a tough stance on Bitcoin, despite mounting criticism of the way the bank has handled the regulation of digital assets.
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