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Bitcoin (BTC) price has taken another step lower today to trade over 10% lower to below the 37,000 handle. Today’s low comes in at $36,101 as the sellers threaten to facilitate a daily close below the 200-DMA near $40,000.
Bitcoin plunged on fresh calls from the senior Chinese officials to further tighten the financial system. A statement coming from the Chinese Vice Premier Liu He and the State Council says that it is necessary to “crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.”
“It is necessary to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish illegal financial activities,” the statement further reads.
This is yet another recent blow for Bitcoin, after Tesla made a U-turn on accepting Bitcoin payments for its electric vehicles citing environmental issues related to the mining of the cryptocurrency.
“Investors are underestimating the regulatory risk of crypto as governments defend their lucrative monopolies over currency,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors in New York.
However, some industry experts say institutional adoption of Bitcoin is here to stay.
“The institutional investors getting exposure to digital gold aren’t going away any time soon. Decentralized finance will continue to grow. Developers will continue to build,” said Paolo Ardoino, chief technology officer of crypto exchange Bitfinex.
Bitcoin price currently trades at $37,200 – down 8.5% on the day.