Bitcoin drops nearly 7% toward $60,000 as major cryptocurrencies plunge

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  • Other cryptocurrencies, including bitcoin and ethereum, fell sharply on Tuesday, retreating from record highs.
  • According to data from CoinDesk, bitcoin fell to $60,000 during trading time in Singapore.
  • China’s state planner, the National Development and Reform Commission (NDRC), said during a press conference on Tuesday that it would continue to clean up virtual currency mining in the country.

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Bitcoin and other cryptocurrencies fell sharply on Tuesday, retreating from record highs.

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According to data from CoinDesk, bitcoin fell to $60,000 during trading time in Singapore. It recovered some of those losses and was trading at around $60,600.10 at 2:42 p.m. in Singapore (1:42 a.m. ET), down nearly 8% from 24 hours ago.

Meanwhile, Ether fell nearly 8% to $4,310.96.

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The motivation behind the price movement was unclear.

China’s state planner, the National Development and Reform Commission (NDRC), said during a press conference on Tuesday that it would continue to clean up virtual currency mining in the country.

Earlier this year, China cracked down on bitcoin mining, leading to an exodus of miners. Mining is an energy-intensive process that both creates new coins and keeps a log of all transactions of existing digital tokens.

Beijing is concerned about the amount of energy being used by mining.

According to Businesshala’s translation of his Mandarin remarks Tuesday, NDRC spokesman Meng Wei said mining “causes large energy consumption and carbon emissions. It has no proactive effect to lead to industry development or scientific progress.”

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“Regulating cryptocurrency mining activities has a significant meaning in optimizing our industrial infrastructure, saving energy and reducing emissions, achieving carbon emissions and neutrality goals.”

Chinese President Xi Jinping said last year that China aims to achieve carbon neutrality by 2060.

The NDRC said it would focus on state-owned companies involved in cryptocurrency mining. It also said that it is considering imposing “punitive electricity prices” against those participating in cryptocurrency mining activities but paying a residential electricity price.

Chinese authorities have been focusing on eliminating bitcoin mining since the beginning of this year.

Negative crypto-related comments from Chinese officials often lead to sales of digital coins, even if those comments are not overly new.

Pullback from record high

Cryptocurrency prices have also plummeted as many of them hit all-time highs in November.

Bitcoin reached a record high of $68,990.90 on November 10th and Ether followed on November 11th.

Vijay Iyer, Asia Pacific head at cryptocurrency exchange Luno, told Businesshala via email, “I think we are seeing a healthy pullback after a 7-week rally from 40K to 69K, which is normal to the upside.”

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