June 21, 20218:25 PM +0630Last Updated 5 hours ago
Technology
Bitcoin tumbles 10% in wake of deepening China crackdown
Kevin BucklandTom Wilson
3 minute read
Summary
Bitcoin falls almost 10%, down 20% in last six days
Ether, smaller coins tumble
China mining crackdown spreads to Sichuan
TOKYO, June 21 (Reuters) - Bitcoin tumbled almost 10% on Monday as recent volatility in the cryptocurrency market showed no signs of dampening down, with market players citing jitters over China's expanding crackdown on bitcoin mining in thin liquidity for the losses.
Bitcoin fell as low as $32,094 to its lowest in 12 days, dragging smaller coins down. It was last down 8.3%, on course for its biggest daily drop in a month.
The world's biggest cryptocurrency, long plagued by volatility, has lost over 20% in the last six days alone and is down by half from its April peak of almost $65,000. Still, it has still gained over 10% this year.
The drop comes amid a growing crackdown on cryptocurrencies in China, where authorities in the southwest province of Sichuan on Friday ordered bitcoin mining projects to close. read more
The State Council, China's cabinet, last month vowed to clamp down on mining and trading as part of a series of measures to control financial risks.
Small toy figurines are seen on representations of the Bitcoin virtual currency displayed in front of an image of China's flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
Small toy figurines are seen on representations of the Bitcoin virtual currency displayed in front of an image of China's flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration
A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken June 14, 2021. REUTERS/Edgar Su/Illustration
1/3
Small toy figurines are seen on representations of the Bitcoin virtual currency displayed in front of an image of China's flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration
Data on mining is scarce. Yet production of bitcoin in China accounted last year for about 65% of global production, according to data from the University of Cambridge, with Sichuan its second-biggest producer.
Companies that mine bitcoin - an energy-intensive process - typically hold large inventories of the cryptocurrency, with any moves to sell large amounts depressing prices.
"(The) crackdown on Chinese miners might mean that they are offloading coin into a thin market and taking us lower," said Ben Sebley of London-based crypto firm BCB Group.
China's central bank said on Monday it had summoned some banks and payment institutions recently, urging them to crack down harder on cryptocurrency trading. read more
Agricultural Bank of China (AgBank), China's third-largest lender by assets, (601288.SS) said separately it was following the People's Bank of China's guidance and would conduct due diligence on clients to root out illegal activities involving crypto mining and transactions. read more
Smaller rival ether , which tends to move in tandem with bitcoin, dropped as much as 12%, falling below $2,000 for the first time in almost a month.
Reporting by Kevin Buckland; Editing by Toby Chopra
Our Standards: The Thomson Reuters Trust Principles.
More from Reuters
Read Next
Technology
U.S. SEC seeks information from SolarWinds clients in cyber breach probe
1:02 AM +0630
Business
GameStop names CEO Matt Furlong to board
12:57 AM +0630
Business
Shareholders narrowly approve videogame maker Activision Blizzard CEO's $155 mln pay
12:32 AM +0630
Technology
Explainer: ‘Death cross’ chart formation adds another worry to bitcoin outlook
12:34 AM +0630
Sign up for our newsletter
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Technology
Technology · June 21, 2021 · 11:50 PM +0630
U.S. Commerce Department rescinds TikTok, WeChat prohibited transactions list
The U.S Commerce Department said Monday it was rescinding a list of prohibited transactions with TikTok and WeChat that were issued in September as the Trump administration sought to block new U.S. downloads of both Chinese-owned apps.
Technology
Explainer: ‘Death cross’ chart formation adds another worry to bitcoin outlook
12:34 AM +0630
Technology
India plans tighter e-commerce rules amid complaints over Amazon, Flipkart
June 21, 2021
Technology
U.S. SEC seeks information from SolarWinds clients in cyber breach probe
1:02 AM +0630
Technology
Facebook launches Clubhouse-like live audio rooms and podcasts
June 21, 2021
Latest
Home
Media
Videos
Pictures
Graphics
Browse
World
Business
Legal
Markets
Breakingviews
Technology
Investigations
Lifestyle
About Reuters
About Reuters
Careers
Reuters News Agency
Brand Attribution Guidelines
Reuters Leadership
Reuters Fact Check
Reuters Diversity Report
Stay Informed
Download the App
Newsletters
Information you can trust
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Follow Us
Thomson Reuters Products
Westlaw
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
Onesource
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
Checkpoint
The industry leader for online information for tax, accounting and finance professionals.
Refinitiv Products
Eikon
Information, analytics and exclusive news on financial markets - delivered in an intuitive desktop and mobile interface.
Refinitiv Data Platform
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
World-Check
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
Advertise With Us
Advertising Guidelines
Cookies
Terms of Use
Privacy
Corrections
Site Feedback
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved