Prices for Bitcoin (BTCUSD) and other major cryptocurrencies plunged Friday morning after Chinese authorities reiterated their tough stance against the asset class. Bitcoin’s price fell by as much as 10% to $40,983 in roughly three hours, according to coinmarketcap.com data. Ethereum (ETHUSD) got caught up in Bitcoin’s slipstream and crashed by 12% to $2,747.34 in the same period. Collectively, cryptocurrency markets fell from a market capitalization of $2 trillion to $1.8 trillion, approximately a 10% loss, during that time.
As of this writing, the markets are recovering. At 16:45 UTC, Bitcoin was changing hands at $42,184.24, and Ethereum was trading at $2,894.59. The total market capitalization for cryptocurrency markets was $1.89 trillion.
- Bitcoin’s price tumbled Friday morning after Chinese authorities reiterated their tough stance against cryptocurrency activities, including trading and mining.
- Today’s notices add fresh detail to the Chinese government’s efforts to curb cryptocurrency activities and mention the establishment of a “joint working mechanism” between local, state, and central governments to identify such activities.
- Some say that the notices are a government attempt to “ratchet up rhetoric” before launch of a digital currency backed by the central bank.