Bitcoin on Tuesday crashes to a five-month low as the price declines below the $30,000 mark.
The cryptocurrency has suffered several prices falls in recent days, having traded above $40,000 just one week ago.
This sudden decline comes amid China’s intensifying crackdown against cryptocurrency mining in the country.
As per China’s English newspaper, Global Times report, over 90 percent of the country’s Bitcoin mining capacity is likely to be closed, at least for the short term, after local authorities mandated mining halt in Southwest China’s Sichuan province, among the country’s largest crypto mining bases.
According to the data from CoinMarketCap, the largest cryptocurrency sank as low as $29,511 at the time of filing this report, below $29,773 for the first time since January 22.
“China used to form a major market for both trading and mining. As this has got hit due to new strict regulations in the country, it is affecting the global market. China always has had varied and confusing regulations in the past, and after the corrections this time, the global market should become more resilient to uncertainties in China. This event will get recorded in history as one another event towards the decentralization of cryptocurrencies,” Sathvik Vishwanath, Co-Founder & CEO, Unocoin told Financial Express Online.
As per the reports, other major currencies such as Ethereum and Dogecoin have also dropped.
While Ethereum dropped to $1,718 on Tuesday from $1,700 on March 29, after peaking at $4,306 on May 12, Dogecoin had declined to $0.1667 from $0.7188 on May 8, 2021.
The market-wide crash took the overall market cap of all cryptocurrencies combined below $1.2 trillion for the first time since February.
Half a trillion dollars has been wiped from the market in the last seven days alone.