The prices of Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies plummeted after the Financial Stability and Development Committee of China (FSDC) decided to maintain its stance on Bitcoin mining in the country during its 51st meeting, with a plan to end Bitcoin mining and trading.
According to the report, the Chinese financial regulator will also focus on reducing credit risks, reforming midsize financial institutions and severely punishing illegal financial activities.
Thomas Heller, Co-Founder and CBO of Compass Mining, who broke the news on Twitter claimed that local crypto miners in the country are still not sure how the recent development will affect the industry.
Thomas Heller tweeted:
“Vice Premier Liu He calls for cracking down on Bitcoin mining and trading activities. Anti-bitcoin (mining) news comes up regularly, but it's worth keeping an eye on. The miners in China that I have spoken to are not sure of the impact at this point. "
Anti-bitcoin news comes up regularly, but this seems to be different and is worth monitoring.
As expected, the news has mainly affected the price of Bitcoin (BTC), Ethereum (ETH) and others. Even some proof-of-stake (PoS) -driven digital currencies, such as Cardano (ADA), are affected as well.
Bitcoin has tumbled to an intraday of $ 36,679, while Ethereum has dropped below $ 2,500. Other cryptocurrencies have also seen losses. At the moment, it cannot be determined how long this negative trend will last.
The unfavorable news from FSDC marks another blow for Bitcoin, Ethereum and other cryptocurrencies during their difficult week.
The cryptocurrency market was also affected yesterday after the United States Treasury requested the report of transfers of more than $ 10,000 to the IRS by companies, which is part of the Biden administration's strategy to push the application. of taxes.