On Monday, the most popular cryptocurrency sank to $6,558.14, its lowest level since May. Bitcoin is now under pressure from several sources but the China accelerated crackdown on businesses involved in cryptocurrency operations has been a key driver – note that the rally to $7,150.79 was again a China source when President Xi Jinping signaled that China would be more open to blockchain technology. The Blockchain speech by President Xi triggered a Bitcoin rally to $10,000 just three months ago. The rollercoaster price action seems to be all China driven now as the Middle Kingdom is the source of all things crypto in the past 12 months. Last Friday the People`s Bank of China, the Central Bank continued to target exchanges and told the people to be wary of cryptocurrency exchanges.
It now seems that Bitcoin is on a downward path and that could last for several months – remember the selloff last year around this same time? There was a crypto-winter and we featured several pieces on this platform by Tom Lee that discuss the issues of the crypto-winter. But note that this cryptocurrency has had several comebacks with a 70% rally after a 2016 sell-off. So it is possible that the next rally is just months away.