Bitcoin on Tuesday briefly fell below $30,000 for the first time since January, adding to losses a day before when the cryptocurrency formed a dreaded ‘death cross’ as China expands its crackdown on cryptocurrency mining.
The world’s largest cryptocurrency slumped as low as $28,814 on Tuesday, a 7 percent loss on the day that dragged down smaller coins such as Ether and Dogecoin, before paring some losses.
Bitcoin tumbled over 10 percent on Monday, its largest one-day drop in over a month, with losses of nearly 30 percent in the last week alone almost wiping out gains for the year.
The losses spurred a bearish ‘death cross’ chart formation, when Bitcoin’s 50-day moving average dropped below the 200-day average. The opposite trend is known as a ‘golden cross’.
Meanwhile, CNBC host Jim Cramer announced that he had sold ‘nearly all’ of his Bitcoin, citing the China crackdown and fears of greater U.S. regulation.
CNBC host Jim Cramer announced Tuesday that he had sold ‘nearly all’ of his Bitcoin, citing the China crackdown and fears of greater U.S. regulation
Bitcoin on Monday entered a bearish ‘death cross’ chart formation, when Bitcoin’s 50-day moving average dropped below the 200-day average
Bitcoin recovered some losses after dipping below $30,000 on Tuesday
‘Sold almost all of my Bitcoin. Don’t need it,’ Cramer said on-air Tuesday morning, more than two months after he revealed that he paid off a home mortgage with Bitcoin profits.
Southeby’s to accept crypto in auction or rare 101-carat diamond
Sotheby’s has announced it will accept cryptocurrencies as payment for a rare 101.38-carat diamond that is expected to fetch up to $15million at auction next month.
The auction house on Monday said its sale will mark the first time a diamond of such size has been offered for public purchase with cryptocurrency. No other physical object of such high value has previously been available for sale with cryptocurrency, it said.
The pear-shaped diamond, dubbed The Key 10138, is one of just ten diamonds of more than 100 carats ever to come to auction, only two of which were pear-shaped.
It carries a pre-sale estimate of $10million – $15million and will be sold on July 9 in Hong Kong. Bitcoin or Ethereum, along with traditional money, will be accepted as payment.
‘I’m saying that this is not going up because of structural reasons,’ said Cramer, citing China’s crackdown on miners and fears that Bitcoin’s use by ransomware extortionists would lead to backlash in the U.S.
‘When [China] goes after something, they tend to have their way. … It’s not a democracy. It’s a dictatorship,’ Cramer said.
He added: ‘I think that they believe it’s a direct threat to the regime because what it is, is a system that’s outside their control.’
Meanwhile Dogecoin, the joke cryptocurrency touted by Elon Musk, was down some 75 percent since its peak just before Musk appeared on Saturday Night Live in May.
After facing intense backlash and fury from the Bitcoin community, Musk has backed off of his incessant tweeting of pronouncements about cryptocurrency.
Bitcoin has plummeted by more than half from its April peak of almost $65,000. Year-to-date, it remains up just under 1 percent.
Ether, the second-biggest cryptocurrency that tends to move in tandem with Bitcoin, fell as low as $1,701, its lowest in a month, but remained up 150 percent since the beginning of the year.
Some believe the decline is temporary, and predicted a bounce-back.
″$30,000, we’ll see if it holds on the day. We might plunge below it for a while and close above it. If it’s really breached, $25,000 is the next big level of support,” said Galaxy Digital CEO Mike Novogratz said on CNBC.
“Listen, I’m less happy than I was at $60,000 but I’m not nervous,’ he said.
China proclaimed a ban on cryptocurrency in 2017, but its recent pronouncements are seen as having more teeth, coming from the top levels of leadership.
Dogecoin, the joke cryptocurrency touted by Elon Musk, was down some 75 percent since its peak just before Musk appeared on Saturday Night Live in May
Bitcoin hit levels not seen since January amid concerns over China’s crackdown
Chinese citizens had gotten around the ban on exchange services by using over-the-counter (OTC) platforms based overseas to send Bitcoin payments and buy cryptocurrencies.
Monday’s statement from the People’s Bank of China (PBOC) urged China’s largest banks and payment firms to crack down harder on OTC trading, the latest tightening of restrictions on the sector by Beijing.
‘It basically says now OTC transactions are not legitimate … we are not allowed by the banks to transfer money for cryptocurrency purchases and sales,’ said Bobby Lee, chief of cryptocurrency wallet app Ballet and formerly CEO of BTC China, China’s first bitcoin exchange.
After Monday’s PBOC statement, banks including Agricultural Bank of China and Ant Group’s ubiquitous payment platform Alipay said they would step up monitoring to root out crypto transactions.
Last month, Chinese three industry associations issued a similar ban on crypto-related financial services, though market players said it would be hard to enforce as banks and payment firms could struggle to identify crypto-related payments.
‘We are definitely in the midst of a correction,’ said Anthony Wong of Hong Kong-based crypto firm Orichal Partners.
‘This time China’s iron-fist ban on crypto seems to be more serious than back in 2017 as the directive came straight from the top.’
Already in Beijing’s sights were cryptocurrency miners. China’s State Council, or cabinet, said last month it would tighten restrictions on producers as well as traders of bitcoin.
Authorities in major Bitcoin mining hubs including Sichuan, Xinjiang, and Inner Mongolia have issued their own curbs with greater details on the restrictions.
Evidence of the impact of the curbs is emerging. The so-called hash rate of the Bitcoin network – a measure of its processing power that shows how much mining is taking place, on Monday hit its lowest level since late 2020.
The crackdown on miners will likely hit prices in the short-term, market players said.
‘Some of the miners in China may be more willing to sell their Bitcoin now versus when they are able to run their mining operations, because they have to raise cash,’ said Seth Melamed, of Tokyo crypto exchange Liquid.