China Crackdown Sparks Crypto Carnage: Bitcoin Breaks Below $7k To 6-Month Lows

The crypto space is a sea of red this morning (and the week) after another dramatic leg lower across all the coins...

Source: Coin360

Bitcoin Cash is leading the plunge on the week...

Source: Bloomberg

But Bitcoin is having its 2nd worst week in a year, trading briefly below $7,000 at its lowest in 6 months...

Source: Bloomberg

Ethereum is back below $150...

Source: Bloomberg

The catalyst for the move is unclear butCoinTelegraph reports that Cryptocurrency exchanges operating illegally in China face a new threat after the central bank announced it would take new steps to uphold its trading ban.

In a statement on Nov. 21, the People’s Bank of China (PBoC) warned it was taking action against entities allegedly involved in trading cryptocurrencies such as Bitcoin (BTC).

PBoC: Exchanges “will be disposed of immediately”

The move was in response to a rise in trading activity following China’s public endorsement of blockchain technology, it said. 

Pledging to keep its promise to outlaw trading, the PBoC vowed to “dispose of” any such activity it discovered under its jurisdiction.

“Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early,” a translation of the statement reads.

As Cointelegraph reported, multiple rumors currently abound about a crackdown on legitimate cryptocurrency businesses’ Chinese outposts. On Thursday, attention focused on alleged police raids on the offices of Binance and Bithumb, something both subsequently denied.

And this recently rapid collapse in Bitcoin (and the altcoins) has some well-known critics piling on. In a Twitter debate on Nov. 21, commentators joined forces against Peter Schiff, who claimed BTC/USD was set for a dive as low as $1,000.

image courtesy of CoinTelegraph

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