There have been many FUD resulting in the whole cryptocurrency market downtrend. Including some China-based activities also. This time Chinese government calls for a crackdown on trading and mining cryptocurrencies.
If you read my recent Bitcoin analysis articles, you know I haven’t been talking about the fundamental category. Talked about the Technical part instead. I showed how the price would react through technical analysis. But now, it seems to be the market is now completely dependent on fundamentals.
After my latest post on 21st May 2021, Bitcoin again fell below $37,000 as the Chinese government called for a crackdown on cryptocurrency mining. According to a report by Coindesk, a Chinese government website published a statement summarizing a meeting. It includes officials called for a crackdown on bitcoin mining and trading-based activities.
The meeting of the financial stability and development committee of the state council hosted by a Chinese vice premier named “Liu He”. According to the statement published on the Chinese government website,
“We should crackdown on bitcoin mining and trading activities and prevent individual risks from being passed to the whole society.”
Also, there are warning against cryptocurrency trading by three Chinese financial industry associations. And they also wanted to crack down on bitcoin mining operations happening in one of the mining hubs in china.
I think this is one of the biggest warnings against cryptocurrencies in past years. However, There’s a high chance of trend continuation in the market which means more dumps would appear in the future according to fundamental analysis.