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Bitcoin, other cryptocurrencies continue to drop

The fall in prices of Bitcoin and other digital currencies eased again on June 6, amid fears of a crackdown on them in China.

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Bitcoin, other cryptocurrencies continue to drop
GNN Media: Representational Photo

Bitcoin and 30 other major digital currencies have seen declines over the past 24 hours.

The series began when some cryptocurrency accounts on the Chinese social media site Weibo were suspended for allegedly violating Weibo rules. Chinese officials recently warned of a crackdown on bitcoin mining, following which prices fell.

 

According to experts, there is uncertainty regarding the rules of cryptocurrency in China and now the focus is on mining, issuance of new tokens and retail influencers. Bitcoin is struggling at the technical level as well as in China, with the price hitting a 20-day low.

 

A survey found that the adoption of digital currency at the institutional level could be a long-term one, which also hit prices.

The value of bitcoin has risen sharply this year, reaching $65,000 on reports of adoption by various international companies. But in recent weeks its price has dropped by more than $25,000 and it is currently selling for just over $36,000.

 

However, despite the decline, the price is 25% higher this year than in the same period last year. According to analysts, the value of currencies could decline further, at least for the short term.

 

Such fluctuations in bitcoin prices are not new, as seen in 2017. The value of the currency rose more than 900 per cent in 2017 to close to $20,000, but financial experts warned that the price could fall sharply.

 

It also happened and in February 2018 the price went below $7,000.

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