Bitcoin: again in free fall due to the persecution of the People’s Bank of China

The year 2019 had raised a discreet recovery of the value of bitcoin that fell significantly throughout 2018. Growth had been relatively sustained, but in recent weeks we have seen the value of this cryptocurrencies plummet again, as it is now trading at its lowest value in six months.

Experts indicate that it is all due to the latest reactions that have originated in the Asian giant: the People’s Bank of China has announced that it will vigorously pursue the sale and purchase of bitcoin and other cryptocurrencies, something that in fact is not such a notable change from its position in recent years.

A new blow for cryptocurrencies (and for those who believe in them)

In recent hours bitcoin has come below the barrier of $ 7,000, although at this time has recovered part of the fall and a bitcoin is worth $ 7,116 according to data from CoinMarketCap.

The evolution of bitcoin has been positive during the first half of the year, but since then it has been falling in value and has dragged many other virtual currencies.

The falls had been occurring in recent weeks, but the most relevant has occurred on this last day, probably as a result of statements made by the People’s Bank of China on November 22.

In the statement of this entity explained how “in recent years, speculations related to virtual currency (such as ICO, IFO, IEO, IMO and STO) have been renewed and speculated, prices have skyrocketed and risks have accumulated rapidly. To control these activities they have stressed that “they will continuously monitor virtual currency trading activities within the jurisdiction. Once discovered, they will be eliminated immediately and prevented from occurring before they occur.

The statements of the People’s Bank of China are actually confirmation of that persecution of cryptocurrencies that has been effective in China for more than two years, when the country banned for example the ICOs.

The situation there is contradictory, especially considering that much of the large-scale mining of cryptocurrencies has taken place there and it is rumored that a high percentage of the so-called bitcoin “whales” – those investors with the most bitcoins in their possession – are in China.

Some of them seem to be protecting themselves against possible problems, and this weekend it was discovered that a single transaction of 46,000 BTC (almost 340 million dollars at the moment) had ended up in an unknown virtual purse.

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