Bitcoin plummets as China vows to crackdown

The price of Bitcoin fell this week after the Chinese government increased its crackdown on mining and trading.

The cryptocurrency was up past $40,000 just two weeks, however, has crashed down to under $31,000.

Ruud Feltkamp, chief executive officer at at crypto trading bot Cryptohopper, commented: “People still react strongly to actions from China that create uncertainty so this is likely to reflect negatively on the bitcoin price.

“China is rolling its own cryptocurrency and has every incentive to have as little competition as possible … I think we will see miners leaving China and relocate where there is spare or cheap energy.”

Last year, China produced 65% of Bitcoin. However, the government has said it will crack down on both trading and mining.