Cryptocurrencies Fell Quickly Due to Mining Restrictions in China
OREANDA-NEWS. Cryptocurrencies quickly fell in price per day - the fall in value reached 10-20% due to mining restrictions in China, one of the world's centers for generating cryptocurrencies, according to CoinDesk.
The fall in value slowed down by 2 times in the morning, for example, for bitcoin - from 11% at night to 4%, according to data at 9:24 Moscow time. Now the most popular cryptocurrency is strengthening and is already worth 32.801 thousand dollars. Ethereum fell by this time by 8% - up to 1,948 thousand dollars. Dogecoin fell more than the rest - by 23% to $ 0.2.
The fall began after authorities in China's Sichuan province, one of China's mining centers, cut power to 26 mining companies in mid-June. Investors fear China will continue to tighten conditions for mining.
The rapid growth in the value of cryptocurrencies began in February 2021 after Tesla bought bitcoins for $ 1.5 billion. The cost of bitcoin on Saturday, February 20, updated its historical maximum - above 57 thousand dollars, and in April it reached 63.4 thousand dollars.
According to Anzhey Kovalchuk, the chief strategist for cryptocurrencies at TomiEx, the average market value of bitcoin from June 21 to 27 may fall to 32 thousand dollars. Thus, in a week, the main cryptocurrency can fall in price by 5 thousand dollars. The expert added that pessimism and a decrease in the price to 28 thousand dollars are relevant, however, it is impossible to say unequivocally that the price will fall in the next 7 trading days, or in two weeks. He announced this in a comment to OBOZREVATEL.