Possible Reason Why Bitcoin Price Crashed Drastically
Bitcoin fell below $37,000 for the first time in over three months on Wednesday.
The digital currency was down 20% in the last 24 hours, according to Coinbase.
The Possible Reason Behind The Sudden Price Crash?
The Chinese government has banned financial institutions from conducting any business involving cryptocurrency and warned against trading.
According to Reuters, the announcement was made jointly by three financial industry bodies. The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, said the decision was made because of the risks in cryptocurrency trading.
“Recently, cryptocurrency prices have skyrocketed and plummeted,” said the three in a statement seen by Reuters, “and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”Advertisement
The ban means banks and online payment companies cannot offer any services that involve cryptocurrencies. That includes registration, trading, clearing, and settlement. Crypto exchanges and initial coin offerings are also banned.
The current population of China is 1,444,191,159 as of Tuesday, May 18, 2021, based on Worldometer elaboration of the latest United Nations data. China’s 2020 population is estimated at 1,439,323,776 people at mid-year according to UN data. China’s population is equivalent to 18.47% of the total world population.
This simply means, whatever affects China, affects the rest of the world.
So the question is, could this be the reason behind the drastic Bitcoin price crash?
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