LONDON: Bitcoin’s tumble, amid a broad crypto crackdown from China, has pushed it below $30,000 for the first time since January, pulverizing its entire 2021 gain.
At about 1230 GMT, bitcoin sank as low as $29,334, a level that was last seen in January, with analysts citing Chinese efforts to curb trading and mining operations. The unit later stood at $29,590, down 9.25% in value.
The original cryptocurrency has lost more than 50 percent from its mid-April high of almost $65,000. That compares with a gain of about 12% for the S&P 500 since the end of December.
“Concerns mount over China’s ongoing clampdown and fears that widespread acceptance of bitcoin and other digital currencies will be delayed because of concerns about their environmental impact,” said analyst Fawad Razaqzada at trading site ThinkMarkets.
China has broadened a crackdown on its massive cryptocurrency mining industry with a ban on mines in the key southwestern province. Chinese mines power nearly 80% of the global trade in cryptocurrencies despite a domestic trading ban since 2017, but in recent months several provinces have ordered mines to close.
Authorities in the province of Sichuan ordered the closure of 26 mines last week, according to a notice widely circulated on Chinese social media and confirmed by a former bitcoin miner.
Bitcoin and other cryptocurrencies are minted by solving puzzles using powerful computers that consume enormous amounts of electricity — much of which is usually produced by coal plants.
