Monday, Jan 17, 2022
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Bitcoin drops by more than half as China intensifies crackdown

China Central Bank declares cryptocurrency-related activities illegal, vows harsh crackdown

Bitcoin took a nosedive as much as 9 percent Monday as recent volatility in the cryptocurrency market showed no signs of dampening down.

Market players have cited thin liquidity and China’s expanding crackdown on bitcoin mining.

Chinese mines power nearly 80 percent of the global trade in cryptocurrencies despite a domestic trading ban since 2017.

In recent months, however, a number of provinces in China have ordered mines to close as Beijing turns a sharp eye to the industry.

According to Financial Times report, the price of bitcoin sank to as low as Ksh. 3,482,885.18 (US$32,309).

The unit has taken a severe hit in recent weeks, having hit a record near Ksh. 7,006,812.43 (US$65,000) in April, partly because of Beijing’s crackdown.

Authorities in China’s province of Sichuan ordered the closure of 26 mines last week, according to a notice widely circulated on Chinese social media and confirmed by a former bitcoin miner.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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