Bitcoin ends week in free fall as China warns of cryptocurrency crackdown on automotive news

The largest digital currency fell 10 percent in late-Friday trading to $ 35,636, while other tokens also suffered double-digit losses.

Bitcoin is falling into a free fall again this weekend, after Chinese officials warned it was going to crack down on cryptocurrencies.

The largest digital currency fell to 10% in trading at the end of Friday at $ 35,636, and the pair of tokens also suffered double-digit losses. The coin grossed nearly $ 30,000 a week earlier, ending May 14 at $ 49,100.

The latest coup came when the Chinese Council of State called for a reduction in Bitcoin mining and trade. The crypto market was already worried about the mandatory sale and tax consequences in the U.S. earlier this week.

Friday’s sale was a huge success for Bitcoin believers after defender Elon Musk made a tentative face and criticized the energy use of the token. Bitcoin has been down about 25% since last Friday, even though it was down $ 30,000 since Wednesday’s fall. Other currencies have also fallen – Ether has fallen by about 38% in the last seven sessions.

The bitter stretch began with Musk suspending the acceptance of Bitcoin payments from Tesla Inc. and negotiating with cryptocurrency boosters on Twitter. China’s central bank added a warning against the use of virtual currencies to Tuesday’s decline. On Thursday, the United States may ask tax authorities for crypto transactions of $ 10,000 or more.

China has long expressed dissatisfaction with the anonymity provided by Bitcoin and other cryptocurrencies, and previously warned that financial institutions would not accept payments. There is a high concentration of cryptographic miners in the country who need a large amount of power and are therefore making efforts to reduce greenhouse gas emissions.

“The new guidelines given by regulatory agencies – they’re taking it more seriously, they want more enforcement,” Bobby Lee, chief executive of crypto storage provider Ballet, said in an interview Friday. “It’s about chasing miners. The question is whether they catch all the miners. “

The moves made by China this week underscore its desire to gain control over the country’s volatile asset class. China would prefer to see the People’s Bank of China regulated, according to market watchers.

“It’s not a problem,” said Matt Maley, Miller Tabak + Co.’s chief market strategist. “They say they are doing this as an effort to control risk-taking in their markets, but it is really a sign that China will not be a big market for cryptocurrencies unless PBOC is controlled.”

In the meantime, Bitcoin’s volatility is likely to be elevated. This past Friday again saw Bitcoin pushed below the average price for the last 200 days. Some graphic designers and technical analysts suggest a lower trend could be around $ 30,000, where he found support earlier in the week.

This week’s ups and downs have led to large settlements of large investments and damaged the narrative that cryptocurrencies will become more stable as they mature. Musk’s actions showed how some tweets can still elevate the entire market. But even in recent days they have renewed the threat of regulation in the crypto market.

“Investors underestimate the regulatory risk of cryptocurrency while governments advocate for a monopoly gain on the currency,” said Jay Hatfield, New York’s chief infrastructure adviser. In the U.S., the implementation of transaction reporting requirements could be the “tip of the iceberg” of potential Treasury rules on virtual currencies, he said.

In terms of regulations in China, it can be a waiting game.

“You should always be cautious with China, never overdo or underestimate,” said David Tawil, president of ProChain Capital. “We have to see what the regulations mean. It’s one thing to say another. “