Global Business

Bitcoin slides to 6-month low on China crackdown

Filed on November 22, 2019 | Last updated on November 22, 2019 at 10.06 pm
Bitcoin, the world's biggest cryptocurrency, fell 9 per cent to $6,929 on Friday, its lowest since May.

(Reuters file)

Cryptocurrency has slumped by nearly a third since late-October

Bitcoin slumped to a six-month low on Friday after China's central bank launched a fresh crackdown on cryptocurrencies, warning of the risks entailed in issuing or trading them.

Bitcoin, the world's biggest cryptocurrency, fell 9 per cent to $6,929, its lowest since May, and was last down 7 per cent at $7,107.

The People's Bank of China's Shanghai headquarters said it would tackle growing cases of illegality involving virtual currencies. It also cautioned investors not to confuse crypto with blockchain technology, the digital ledger that underpins many cryptocurrencies such as Bitcoin. The move came a day after regulators in Shenzhen launched a similar campaign, and came as the PBOC prepares to launch its own digital currency.

Bitcoin, known for its wild price swings, soared over 40 per cent in two days after Xi's remarks, with investors betting that Beijing's backing of blockchain and plans for a digital renminbi would accelerate the mainstream embrace of cryptocurrencies. But since late-October Bitcoin has slumped by nearly a third.

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