China issues warnings on cryptocurrency mining, speculating that Bitcoin, the leading currency, may have slipped due to this. As a result, the largest cryptocurrency took a dip of nearly 8 percent to $58,661, and Ether also suffered its lowest this month, facing resistance from record all-time highs.
“The extreme volatility that the market is prone to could lead to a potential domino effect if more negative news were to emerge and take prices to new lows.”
Walid Koudmani, analyst at XTB Market
Technical analysis of the graphs suggests that these dips won’t affect the bigger picture and Bitcoin at $100,000 is inevitable.
Some analysts also attributed the dip to new tax-reporting requirements for digital currencies that are a part of the $550 billion infrastructure bill, which President Joe Biden signed into law Monday.
Why is Bitcoin getting affected by China?
Hayden Hughes, Chief Executive Officer of Alpha Impact – a social-trading platform, cited concerns about China continuing its regulatory crackdown. The country will closely monitor lending the punitive power prices for companies that are involved in cryptocurrency mining, National Development and Reform Commission spokeswoman Meng Wei said at a news conference.
Meanwhile, Twitter Chief money handler Ned Segal said on Monday with Dow-Jones Industrial Average that it didn’t add up to take a position the company’s profit crypto assets like Bitcoin.
China’s ruling political Party slammed the “money worship”,; “extreme individualism”, and corruption that emerged within the four decades since the country detached, calling for stronger party leadership and moral discipline in a very key resolution released on Tuesday.
The document strengthens President Xi Jinping’s dominance of the Party before what’s likely to be a precedent-breaking third term to start next year while enshrining his vision of China’s historical trajectory.
The Party seems to believe that more strict regulation, more ideological work, and just some “self-confidence” will help solve the upstanding problems, given that Xi’s this ideology has solved many issues in the past with this.
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