Bitcoin drops below $30,000 for the first time in nearly five months as China’s latest crackdown on cryptocurrencies weighed. The world’s largest cryptocurrency fell to $29,614, its lowest since January 27.
As per Coindesk data, the world’s largest cryptocurrency plunged over 8% to trade at $29,719. Ether, the second-biggest crypto currency, was also down 10% to trade below $2,000 level at $1,768. Dogecoin prices crashed the most as the digital token fell to $0.17, down around 25% in the past 24 hours. Other cryptocurrencies like XRP, Litecoin also fell over 10%.
Bitcoin last traded below $30,000 at the end of January. That support level held steady during a selloff last month that saw it wipe out roughly 35% for the month of May.
The sell-off was sparked by an announcement from the Peoples Bank of China saying it had summoned China’s largest banks and payment firms urging them to crack down harder on cryptocurrency trading.
Crypto exchanges were effectively pushed out of China by a 2017 rule change, but over the counter (OTC) platforms based-overseas sprung up to act as middlemen, receiving payment from people based in China and buying cryptocurrencies on their behalf.
Beijing has sharply ratcheted up its campaign against cryptocurrencies in the past few weeks, since China’s State Council, or cabinet, said last month it would tighten restrictions on bitcoin trading and mining.