The value of Bitcoin is hovering near a six-month low after China’s central bank launched a fresh crackdown on cryptocurrencies.
Bitcoin, the world’s biggest cryptocurrency, has fallen to around $7,000, its lowest level since May of this year. The plunge has come after he People’s Bank of China’s Shanghai headquarters said it would tackle growing cases of illegality involving virtual currencies. The central bank also cautioned investors not to confuse crypto with blockchain technology, the digital ledger that underpins many cryptocurrencies such as Bitcoin.
The move came after regulators in Shenzhen launched a similar campaign and came as the Chinese government in Beijing prepares to launch its own digital currency. Chinese President Xi Jinping said in October that the world’s second-biggest economy should accelerate the development of blockchain technology.
Bitcoin, known for its price swings, soared over 40% in two days after Beijing backed blockchain and announced plans for a digital renminbi currency. But since October, Bitcoin has slumped by nearly a third and many analysts say they expect the cryptocurrency to continue slumping heading into 2020.