The major cryptocurrencies in the market capitalization seemed to be doing good the past few months but the prices tumbled with a large drop after China expanded its crackdown on cryptocurrency mining.
The prices dipped below $30,000 for the first time since January 2021. China, the world’s biggest Bitcoin mining country is trying to ban cryptocurrencies outright and the top three mining regions in the country have started to make moves against the miners.
The three regions include Xinjian, Inner Mongolia, and the province of Sichuan, ordering the electric companies to cut the power of all mining operations discovered. Lately, the Yunnan provincial government has also told its power companies to adhere to the same.
Since the crackdown, many Chinese-based miners have started packing up to move to other countries, like the US or Kazakhstan due to the tightened regulations. This was reported by the CNBC network last week.
The price of major cryptocurrencies like Bitcoin and Ethereum have dropped with their value gone from around $57,000 to around $32,000. As recorded on June 22, 2021, the cryptocurrency Dogecoin was down by more than 20%.
China’s Proclamation to the Crackdown
The Chinese government stated it was acting now because of major concerns regarding crypto’s value price, illegal dealings, and potential use for money laundering.
Speculations were also made on the basis that the government may be concerned about crypto’s mining reputation as an environmental disaster with the nation’s desire to be seen as a leader in green energy.
China has also been in the process of developing its own centralized digital currency, a first for a major economy? Virtual/digital money is in the process of turning legal tender into computer code for international use and untethered to the global financial system.
However, they aren’t the only ones. Other countries like Iran have also issued a temporary ban on mining cryptocurrency while India is potentially making ownership of crypto illegal and El Salvador is the first country to make Bitcoin a legal tender.
The Green & Red Market Price Riders
As of June 24, 2021, Bitcoin and Ethereum remained in the red while Dogecoin picked up the pace and was seen in the green. Few others, like Cardano Ripple, Litecoin, Tron, and EOS were also shown riding the green side.
On June 25, 2021, Bitcoin and Cardano were in the green while Dogecoin continues and recovers, Tether tumbles into the red.
Insight into the Top 10 Cryptocurrency Prices (Dated: June 25, 2021):
1. Bitcoin trading at $35,000, the price is up by 7% approximately.
2. Ethereum is trading at $1,999.6, the price is up by 4.8 % in 24-hour change.
3. Dogecoin is trading at $0.2725, the price is up by 22-24% in the 24-hour change.
4. Tether is trading at $ 1.00, the price is down by 0.05 %.
5. Binance Coin is trading at $ 310.69, the price is up by 9% in the 24-hour change.
6. Cardano ADA is trading at $ 1.36, the price is up by 12% in 24-hour change.
7. XRP is trading at $ 0.6695, the price is up by 6% in the 24-hour change.
8. Polkadot is trading at $ 16.01, the price is up by 8.7%.
9. Uniswap is trading at $ 17.78, the price is up by 6.02 %.
10. USD Coin is trading at $1, the price is down by 0.03%.
The Death Cross
There have been speculations and explanations why Bitcoin has entered the ‘death cross’. It is due to the blow it suffered when its selling price saw a massive fall by more than 10% percent.
When the market value of the crypto-market leader (Bitcoin) tumbles down more than 20% or a major sell-off, it is called a death cross. This acts as a signal that the downside will be more ahead, predicting long-term movement.
Hence, those sitting on Bitcoin assets have to be patient and with the commotion going around for environmental concerns and use of high energy by Bitcoin miners, it is said the cryptocurrency will shed more value in the coming days.
Mixed Continuity of Prices
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| Source - Analytics Insight |
The prices of the top cryptocurrency have seen to be in a mix of green and red ever since China’s crackdown. The global market cap is at $1.39 trillion which has seen an over 5% increase since June 24, 2021. The total crypto market volume has seen a 16.27 decrease in its exchange on June 25, 2021.
This came after a South African investment company, AfriCrypt, reported defrauded investors of over $3 billion in Bitcoin funds and have fled the country as reported by Bloomberg.
Earlier in June, on Banking Supervision the Basel Committee had stated that crypto assets, especially that of Bitcoin pose a huge threat and additional risks to banks on financial stability because of potential money laundering that may lead to defaults and huge losses to the bank.
Conclusion - To Expect or Not?
Cryptocurrencies had started at great prices at the start of the year 2021 but suffered a huge blow recently due to the causes aforementioned. Though after trading in the negative territory for almost a week later they have started to recover, top cryptocurrency coins still appear to be struggling to get their mojo back.
It clearly indicates one has to be patient while keeping a close eye on the crypto market and not make any decision in fright as investors remain worried since the development has not been well.
Written By - Umme-Aiman
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