China Could Have Been Behind Bitcoin Price Crash

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• But what caused it?

At the start of this week, and after two intense price drops in less than a week, Bitcoin fell to its six-month low just above $6500 according to CoinMarketCap.

Now, priced at $7,147 at the time of writing, the leading cryptocurrency is on it’s way back to safety.

But what caused it?

Before we go any further, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!

Several analysts are pointing the finger at the mass sell-off being behind the latest downward pressure. This comes as £100m of positions were liquidated into fiat currency.

At the end of October, the flagship cryptocurrency went through some significantly bearish movement and this followed into November after the testing the $10,000 resistance last month.

Many have claimed the most recent activity on the strict guidelines on blockchain from China was what caused the crash. The People's Bank (PBoC) announced it would be coming down hard on crypto trading earlier this month, so it’s not a far cry to suggest so.

As previously reported CryptoDaily:

An official notice from the Peoples Bank, says that the need to address the trading ban came up because of an increase in theories on digital currencies. 

Roughly-translated, the notice states:

“The People’s Bank of China will continue to implement the requirements of the “Announcement” [2017 ban] and continuously monitor the virtual currency business activities within the jurisdiction. Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!