Bitcoin slips 7% on China’s latest crackdown on cryptocurrencies

New Delhi: Bitcoin fell nearly 5% on Friday after China’s central bank said it would crack down on cryptocurrency trading, banning overseas exchanges from providing services to mainland investors.

The largest cryptocurrency was last down 4.6% at $42,874, with smaller coins that typically trade in tandem with bitcoin also tumbling. Ether fell over 8% while XRP slipped 7%.

The People’s Bank of China also said it will bar financial institutions, payment companies and internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities.

“Crypto markets are in an extremely frail state overall, and these sorts of downswings speak to that; there’s a degree of panic in the air,” said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities.”Crypto continues to exist in a grey area of legality across the board in China.”( Also Read: Flipkart Big Billion Days Sale: Poco X3 Pro, Moto G40 Fusion prices reduced; check other deals )

Shares in cryptocurrency and blockchain-related firms also came under pressure with U.S. listed miners Riot Blockchain, Marathon Digital and Bit Digital slipping between 4.1% and 5.1% in premarket trading.China-focused SOS slipped 1.2% while crypto exchange Coinbase Global fell 2.7%. (Also Read: Amazon ‘Great Indian Festival 2021’ dates out, sale to begin from October 4 )

Earlier this year, Chinese authorities said they would crack down on cryptocurrency mining, sparking a massive sell-off of bitcoin and other coins.