Bitcoin and several other cryptocurrencies went down on Sunday as concerns regarding the crackdown on the crypto sector came to the surface. One report from the Goldman Sachs Group was a reminder that institutional adoption in many countries, including China, could very well be a long, drawn-out process.
Bitcoin And Other Cryptocurrencies Are Plummeting
Thirty different cryptocurrencies including bitcoin went down the last one day, as reports started flooding in from CoinGecko. Weibo, the social media service from China went about suspending most of the accounts which dealt with cryptocurrencies. This resulted in several messages popping up throughout the platform- with reports of the accounts violating laws, regulations, and rules placed forward by Weibo.
The Chinese government has already put cautions on the trading of cryptocurrency, with the mining efforts of Bitcoin coming under fire- which has led to a decline in prices. Jonathan Cheesman, the head of institutional sales of FTX- the crypto derivatives exchange, stated that the Chinese crypto regulations have been pretty straightforward. The government has been focused on new issuance, mining, along retail influencers.
The media officer for Weibo wasn’t available for comments on Sunday. The service had taken a similar stance back in 2019, when it went ahead and suspended the accounts of Binance Holding Ltd., along with Tron, the blockchain platform. The largest cryptocurrency has also been struggling with technical levels- where it remains between the moving average of 20-day and 200-day.
Bitcoin has stepped on the gas this year as it surged to around $65,000 amidst several claims of institutional adoption, with the idea that the storage value would be similar to digital gold. Also, the cryptocurrency had found endorsements from several high-ranking investors like Stan Druckenmiller, and Paul Tudor Jones.