On Tuesday, Bitcoin fell below the long-held support level of $30,000, reaching its lowest level since January 28. According to CoinDesk 20 statistics, the cryptocurrency traded at $29,700 soon before press time, reducing the year-to-date gain to just 3%.
At the end of January, Bitcoin was trading below $30,000 for the first time. During a selloff last month that saw the stock lose about 35% of its value for the month of May, that support level held firm.
For years, China and Bitcoin have had a difficult relationship. Bitcoin has dropped even further in the aftermath of China's growing ban on bitcoin mining, as investors become increasingly concerned about the cryptocurrency's future. China barred financial and payment institutions from offering bitcoin services earlier this month.
Bitcoin is currently trading at $29,771.65 USD, with a 24-hour trading volume of $48,01,79,27,919 USD. In the previous 24 hours, Bitcoin has lost 7.62 percent of its value.
On Monday, China stated that it had invited officials from the country's largest banks to a conference to reinforce a prohibition on cryptocurrency services. It's the latest indication that China intends to do everything it takes to eliminate any remaining crypto trade loopholes.
The Chinese government has been strengthening its grip on cryptocurrency. Authorities in Sichuan, China's south-west province, ordered bitcoin mining operations to shut down on Friday.
After the People's Bank of China (PBOC) called for a stronger crackdown on virtual-currency dealings, bitcoin, ether, and other cryptocurrencies are trading lower.
Since Friday, when a major bitcoin mining centre ordered miners to stop down operations, China's increased crackdown on the cryptocurrency industry has erased roughly $300 billion from the total digital currency market.
At press time, Ether, the second-largest cryptocurrency by market capitalization, was trading near $1,920, its lowest level since May 23. Other popular cryptocurrencies, including XRP, Cardano, and Polkadot, have suffered losses ranging from 5% to 10%.
Alipay, China's Agricultural Bank, and Postal Savings Bank have all issued statements stating that they will take the appropriate procedures to restrict virtual currency-related business activity.
AgBank, the world's third-largest bank by assets, has stated that it will follow the PBoC's lead and strive to prevent its clients from engaging in crypto-related activities.
Traders in China would have to transfer their Yuan to a cryptocurrency exchange platform.