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- The largest cryptocurrency was recently trading at $42,874, down 4.6 percent.
- Ether is down more than 8%, while XRP is down 7%.
- "Crypto markets are in a fragile position generally," says Joseph Edwards, "and these types of downswings speak to that; there's a sense of panic in the air."
LONDON – Bitcoin fell nearly 5% on Friday as the People's Bank of China announced a crackdown on cryptocurrency trading, prohibiting offshore exchanges from serving mainland investors.
The most valuable cryptocurrency was recently down 4.6 percent at $42,874, with lesser currencies that normally trade alongside bitcoin also down.
Ether is down more than 8%, while XRP is down 7%.
China's central bank also said that financial institutions, payment businesses, and internet corporations will be barred from aiding cryptocurrency trading, and that risk monitoring of such operations will be strengthened.
"Overall, cryptocurrency markets are incredibly weak, and these types of downswings speak to that; there's a sense of panic in the air," said Joseph Edwards, head of research at bitcoin broker Enigma Securities.
"Across the board, cryptocurrency continues to live in a murky area of legality in China."
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| photo Courtesy: 5pond |
Shares of cryptocurrency and blockchain-related companies have also been hit, with US-listed miners Riot Blockchain, Marathon Digital, and Bit Digital all falling between 4.1 and 5.1 percent in premarket trade. SOS, a China-focused company, lost 1.2 percent, while Coinbase Global, a cryptocurrency exchange, fell 2.7 percent.
Chinese officials said earlier this year that they will tighten down on cryptocurrency mining, causing a major sell-off of bitcoin and other digital currencies.
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| Photo Courtesy: The Great Course Daily |
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