Bitcoin feels China‘s heat; drops below $11,000
(FinancialPress) — Bitcoin’s recovery hit a speed bump as China launched a call for centralized regulation of the blockchain. The country‘s stance on the technology behind BTC had it slip below the $11,000 mark.
The cryptocurrency had stabilized on Monday after flying high above the mentioned price mark, but tumbled in early Tuesday, overnight.
Coindesk had Bitcoin trading at $10,479 ($11,590 after pairing its gains) on Monday. It had been steadily rallying back from a massive drop that took its value all the way down to $60,000 in early February, and only broke through the $10,000 barrier on Monday of last week. Ethereum was running at $817.87, down from last night‘s $863.80 value. Bitcoin Cash dipped from $1,284.63 to $1,209.71.
Ripple was one of the biggest losers, dropping a full 10% in value – from $1.05 on Monday morning to $0.93. Rumors of it finally being added to Coinbase had fueled its valuation – however that actually materializing is still uncertain.
The turmoil was sparked by Zhang Ye – head of the tech unit at China‘s Securities Regulatory Commision – stating that more regulation for the blockchain is needed. This happened during the Two Sessions conference in Beijing.
“Blockchain’s advocates for absolute decentralization have no solid ground, because (blockchain) itself is a software developed in a centralized way,” Zhang told Chinese publication Securities Times as part of an interview. “So is the public key infrastructure, which remains an important feature adopted by blockchain.”
Adding to the crypto world‘s woes, there have been reports of Chinese regulators shutting down the social media accounts of popular cryptocurrency exchanges that are still offering their services in the mainland.
Caixin reported on Monday that local authorities have shut down the channels for some of such service providers in WeChat, the country‘s most popular social messaging platform. The Beijing publication stated that this was due to stricter official oversight on platforms offering coin exchanges to Chinese investors.