The price of Bitcoin fell below $ 37,000 when a major Chinese government body called for a crackdown on cryptocurrency mining. Which amplified regulatory concerns.
The prices of the largest cryptocurrency by market cap fell during US business hours, erasing a considerable part of the corrective bounce from Wednesday’s low of $ 30,000.
The decline came after a Chinese government website published a statement summarizing a high-level meeting. In which officials called for an offensive against bitcoin mining and trading activities.
Chinese Vice Premier Liu He organized a meeting of the State Council’s Financial Stability and Development Committee on Friday.
«We should be more vigilant and look for potential risks”According to a statement posted on the website after the meeting. «We should crack down on bitcoin mining and trading activities and prevent individual risks from being passed on to the whole of society».
This is one of the most prominent warnings against cryptocurrencies in recent years. The State Council is China’s main administrative authority, where the heads of the executive department at the cabinet level make national policies.
Bitcoin is in a ‘discounted bull market’ unlike stocks, says a Bloomberg Intelligence analyst
In a tweet, Mike McGlone, senior commodities strategist for the research unit, described to Bitcoin as a “discounted bull market.”
For McGlone, the bull market is still going. And even though the price of Bitcoin fell, it ensures that the tokens are now a bargain at current prices.
«Bitcoin’s Edge Over Stocks: A Discounted Bull Market“, summarized.
«In our opinion, the May 19 crash of virtually all assets that followed Bitcoin showed that cryptocurrencies have entered the scene. With potential results tilted in your favor».
He highlighted the advantageous volatility against traditional stocks, along with a graph suggesting that Bitcoin “may have passed the correction test.”
Hong Kong Regulators Are Ready To Ban Bitcoin Retail Trade
Hong Kong regulators have moved to ban retail trade in the country. After months of intense speculation about a possible ban.
According to a Reuters report, the Hong Kong Treasury and Financial Services Office has released the results of its inquiry on a possible cryptocurrency retail trade ban, which began in November 2020.
As part of its conclusions, the Hong Kong FSTB called for a comprehensive licensing regime for cryptocurrency exchanges. And it restricted trading to qualified investors only.
Under Hong Kong law, only people with portfolios valued at HK $ 8 million (about $ 1 million) qualify as professional investors.
Vitalik Buterin assures that there is a financial bubble in the market and that cryptocurrencies are not a game
Ethereum’s main developer and co-founder, Vitalik Buterin, noted that the digital currency ecosystem is facing a financial bubble, and that this is not a game.
This was stated by Buterin during an interview conducted by CNN. Where he indicated that he did not feel concerned that the price of Bitcoin fell as well as Ethereum and the general market. Precisely because the market for digital currencies has already seen similar ones that are much more pronounced.
Addressing one of the most controversial topics debated by enthusiasts and critics of digital currencies, Buterin compared the current situation in the ecosystem to a bubble, ensuring that it is very difficult to predict when it could burst. Therefore, it is not possible to determine if the worst is over or could get worse in the coming months.
In this regard, the co-founder of Ethereum commented:
«We have had at least three of these big crypto bubbles so far. And quite often, the reason bubbles end up stopping is because some event occurs, in which it becomes clear that the technology is not there yet.».
Another aspect he was asked about was the effect of the statements of the CEO of Tesla, Elon Musk, whose messages and announcements have made their weight felt on the price of coins such as Bitcoin and Dogecoin specifically.
Although Buterin said he believed that Musk did not seem to have bad intentions, at least with Dogecoin, he did say that his constant participation in the ecosystem is something new, but he ruled out that his comments will always have the same weight precisely because they will lose the novelty that so far has had.