The most popular cryptocurrency briefly came below $30,000 in Tuesday trading. This was the first time since January this year. It has fallen to less than half of its all-time highs in April.
According to analysts, the latest moves by China’s central bank are mainly behind Bitcoin’s weakening below $30,000. It has tightened its policy on cryptocurrencies. The People’s Bank of China has called on China’s largest banks and payment brokerage companies to crack down harder on cryptocurrency trading. These are Beijing’s strictest measures yet in relation to digital currencies.
But, analysts say, Bitcoin’s fundamentals have not changed, so they do not attach much weight to this correction. Indeed, this was reflected in the later hours of Tuesday trading, when Bitcoin returned above the 30,000 mark and closed slightly higher than on Monday.
However, cryptocurrencies are not made on roses in China. Cryptocurrency exchanges were effectively pushed out of the world’s most populous country in 2017, when the rules for their functioning were tightened. Some platforms have reschedued overseas, but this has not prevented the Chinese from trading cryptocurrencies.