Bitcoin has suddenly moved sharply lower, losing 10% of its value in the last 24 trading period and dipping below the psychological $7,000 level.
The bitcoin price, which has been on a downward trend all month, began this week at over $8,000 but bad news for bitcoin and crypto out of China this morning has knocked investor confidence.
Bitcoin rivals ethereum and bitcoin cash have led the market lower this morning, each losing over 12% of their value in the last 24 hours.
Ripple’s XRP, litecoin, EOS, bitcoin SV, and binance coin have all also been heavily sold off, wiping billions of dollars from the value of the combined bitcoin and crypto market.
This morning the People’s Bank of China (PBoC) has warned it will be cracking down hard on bitcoin and cryptocurrency trading in the country.
“Once [bitcoin or cryptocurrency trading] is discovered, it will be disposed of immediately, and it will be prevented from happening early,” a PBoC statement, translated through Google, read.
The Shanghai-based central bank also warned against conflating the country’s interest in blockchain with bitcoin and crypto.
“Recently, in the process of promoting blockchain technology, virtual currency speculation has shown signs of rising. Investors should be careful not to mix blockchain technology with virtual currency.”
Last month, China’s president President Xi Jinping that the country should “seize the opportunity” of bitcoin’s blockchain technology, with many taking the blockchain endorsement as a signal the country could be about to embrace bitcoin.
While bitcoin and crypto trading isn’t explicitly banned in China, the country ordered banks to stop working with bitcoin exchanges in 2017.
The bitcoin and…