Bitcoin collapses on fear of tougher approach in China | Financial

On crypto platform Coindesk, the bitcoin plunged another 5% to $34,760 around 08.00 (Dutch time). Last week, a decline had also started after the cryptocurrency had previously bounced above $40,000. In April, the digital currency peaked close to $65,000.

The further pressure on bitcoin seems to come mainly after the introduction of increasingly strict regulations in China.

In a number of provinces where so-called miners, makers of crypto coins, the activities are increasingly restricted. Trading platforms have also been restricted. Especially in the Asian country, trading digital coins is very popular.

“Dangers of Bitcoin”

Western policymakers are also increasingly warning about the dangers of bitcoin. Pieter Hasekamp, ​​director at the Central Planning Bureau (CP) even recently called for a ‘total ban’ for all crypto coins to ‘prevent a financial disaster for the Dutch’.

The US central bank (Fed) also plays a role in the greatly reduced enthusiasm to get into bitcoin. Hinting at a future tightening of monetary policy last week is having a negative effect on sentiment, especially for riskier assets.

In addition, Tesla CEO Elon Musk has already left a significant mark on the ups and downs of bitcoin this year. His tweets, followed by more than 50 million followers about cryptocurrencies, have had a significant impact on the value of the digital coin in recent months.

Does it still make sense to buy bitcoin? That question is central to a new episode of the podcast ‘A matter of cents’:

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