Crypto Crackdown In China Put Bitcoin On A Roller Coaster

Crypto assets, including bitcoin, fell sharply on Tuesday after reaching near-record highs.

Early Tuesday morning, London time, price levels for the pioneer Crypto dropped toward $60,000.

After recovering some of these losses, Bitcoin was trading around $60.5k a few hours later, down nearly 8% for the day.

After a price bounce on Monday following its Taproot upgrade, Bitcoin is consolidating around the $60k price levels.

Charts for bitcoin show signs of upside exhaustion, suggesting further downside is likely, albeit limited toward the $57k-$60k support area.

In the four-hour chart, the relative strength index registered an oversold signal on Nov. 12, although buyers quickly seized opportunities around $66k

According to the current relative strength index, this week could see some consolidation.

In a press conference Tuesday, China’s National Development and Reform Commission (NDRC) said it would continue to clean up the mining of Crypto assets there.

An exodus of miners resulted from the Chinese crackdown on bitcoin mining earlier this year. In crypto, mining is the energy-intensive process of creating new coins and keeping a log of all transactions carried out with existing digital tokens.

It is important to regulate cryptocurrency mining activities in order to optimize our industrial structure, save energy and cut emissions, and achieve carbon emission and neutrality goals.

President Xi Jinping stated last year that China aims to reach carbon neutrality by 2060.

It said it would target state-owned companies that mine crypto assets. In addition, the company says it is considering imposing “punitive electricity prices” on those who participate in cryptocurrency mining but pay residential electricity rates.

Since earlier this year, Chinese authorities have been focusing on eradicating bitcoin mining.

Even if the comments aren’t entirely new, negative crypto-related comments from Chinese authorities have historically led to a sell-off in the crypto market