Bitcoin Plunges to Sub-$7000 Levels Before Recovering

November 22, 2019 | Digital Assets, News

Bitcoin investors rushed for the exits on news of China crackdowns.

Bitcoin plummeted today after back-to-back crackdowns on virtual currencies in China by the Chinese Government. Yesterday, regulators in Shenzen, and today, in Shanghai, threatened to crack down on alleged illegal activities. The PBoC was reportedly behind both campaigns and seeking to impose a ban on trading in cryptocurrencies.

The authorities are perhaps targeting illegal cryptocurrency exchanges in China. Authorities in Shenzhen have identified a total of 39 exchanges that violated China’s cryptocurrency trading ban.

The PBoC has ominously threatened to “dispose of” any such activities. “Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early.”

Lately, trading volumes in cryptos have been growing after Chinese President Xi Jinping called for his country to “seize the opportunity” afforded by blockchain in a speech last month.

The PBoC said in the most recent statements that it was targeting cryptocurrencies – not blockchain.

Are the moves in preparation for a Chinese digital currency?

China has been forging ahead on developing its technology relating to the blockchain and a digital currency for over five years.

In fact, experts speculate that a Chinese state-backed digital currency could launch within the next two or three months. In August, a report in Forbes said China’s central bank will launch a state-backed cryptocurrency and issue it to seven institutions in the coming months, perhaps on November 11, Singles Day.

However, in September, the People’s Bank of China (PBoC) said that the November date was “inaccurate speculation,” as were details of institutions said to be participating in the digital currency project.

[Related Story: Bitcoin Goes Vertical After Chinese President Xi Jinping’s Pro-Blockchain Remarks           ]

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