Bitcoin (BTC) Under $35,000, Realized Profit/Loss Tanks All-Time Low After China’s Crackdown on Miners

Published May 22, 2021 | Updated May 22, 2021

In Brief
  • Short-term traders ended up booking major losses amid all the FUD.
  • China could possibly cause further trouble to the Bitcoin mining activities in the country.
  • The country still contributed 60% of the total Bitcoin mining worldwide.
bitcoin

Bitcoin (BTC) Under $35,000, Realized Profit/Loss Tanks All-Time Low After China’s Crackdown on Miners

  • Short-term traders ended up booking major losses amid all the FUD.
  • China could possibly cause further trouble to the Bitcoin mining activities in the country.
  • The country still contributed 60% of the total Bitcoin mining worldwide.

Bitcoin (BTC) has touched another low for the month of May 2021 on Friday, May 22 after China goes all out after Bitcoin miners and traders. This is for the second time in a week that the BTC price has slipped under $35,000. The BTC price touched an intraday low of $33,729 before recovering as traders ended booking up heavy losses.

Amid massive FUD, traders have been liquidating their supplies very fast. The Bitcoin network realized profit and loss has hit an all-time low as per on-chain data provider Santiment.

Bitcoin (BTC) has shown massive volatility over the last week with its price making wild swings up and below the $40,000 levels. Considering that a low of new investors has joined the Bitcoin network over the last few months, the price volatility is something they are experiencing for the first time.

Speaking to CNBC, MicroStrategy CEO Michael Saylor said that BTC price volatility is the price investors pay in short term to get outsized returns over the span of a decade.

Earlier this week, MicroStrategy added another 230 Bitcoins worth $10 million at price above $40,000. The company’s total Bitcoin holdings now stand above 92,000. Saylor also confirmed that all entities under them continue to hold their BTC.

China’s Crackdown on Miners and Bitcoin Traders

After banning banks and other institutions from dabbling into crypto, Chinese regulators are now tightening their grip over miners and traders. Chinese Vice Premier Liu He and the State Council released a statement saying strict regulations are the need of the hour in order to protect the country’s financial system.

In the latest statement, China called it necessary to “crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field”. The authorities are also questioning the legality of Bitcoin usage. The statement noted:

“It is necessary to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish illegal financial activities”.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Bhushan Akolkar 544 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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