The Chinese government has recently imposed restrictions on bitcoin transactions. The cooperation of foreign financial institutions in cryptocurrency transactions of mainland investors has been banned. Bitcoin prices have started falling immediately after that incident.
Bitcoin prices fell five percent in global markets on Friday. Earlier, the market value of the cryptocurrency fell 4.6 percent to হাজার 42,884 as the Bitcoin market plunged.
According to Reuters, the price of Bitcoin as well as other cryptocurrencies has fallen. Ether prices fell 7 percent, and XRP prices fell 6 percent.
The People’s Bank of China has recently announced that it will not allow cryptocurrency transactions to various financial and internet institutions. China has said it will step up surveillance to stop such transactions
“Crypto markets are actually in a very fragile situation, such shocks are proof of that; The whole thing is volatile, “said Joseph Edwards, head of research at Enigma Securities, a cryptocurrency financial institution.
“Cryptocurrency is in a gray spot in all sectors of China,” he added.
On the other hand, cryptocurrency and blockchain companies are also under pressure in the United States. Registered minor companies such as Riot Blockchain, Marathon Digital and Bit Digital have suffered from stock price declines.
Earlier this year, Chinese authorities announced restrictions on cryptocurrencies. After that announcement, a large number of digital currencies were sold by the country’s cryptocurrency traders.