Bitcoin Barely Holds $30,000, Dogecoin Plummets 38%

Sharp Drop Amid China Mining Halt and Cryptocurrency Transaction Crackdown
Altcoins Fall More Steeply Compared to Bitcoin
Concerns Over Possible US Stablecoin Regulations

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The cryptocurrency Bitcoin has taken another step closer to breaking below $30,000. Altcoins are experiencing a sell-off phenomenon, with Dogecoin plunging by as much as 39%. Some analysts warn that if the United States follows China in implementing full-scale cryptocurrency regulations, the crypto market could face major turmoil.

According to CoinMarketCap, as of 8 p.m. local time on the 21st, Bitcoin was trading at $31,500, down 11.5% compared to 24 hours earlier. Bitcoin broke below $33,000 for the first time in two weeks and then gradually widened its losses.

The decline in Bitcoin on this day was influenced by news that the People's Bank of China, the country's central bank, summoned private companies such as Ant Group and key bank officials to instruct them to root out cryptocurrency transactions. This, combined with reports the previous day that 90% of mining in China had been halted, froze investor sentiment in cryptocurrencies.

Bloomberg reported that despite the sharp drop, Bitcoin has not shown signs of recovery, and experts predict that entering the $20,000 range is not impossible.

Jim Cramer, a well-known host on CNBC, also revealed that he sold all his Bitcoin holdings considering the risks posed by China.

Compared to Bitcoin, the decline in altcoins is at a ‘panic sell’ level. Ethereum, ranked second in market capitalization, fell 16% to trade at $1,895. Ethereum consecutively broke below $2,000 and then $1,900 on this day.

Dogecoin, supported by Tesla CEO Elon Musk, plummeted 38.9% to 16.9 cents. Dogecoin’s weekly decline rate reached 48%, far exceeding Bitcoin’s 21% drop.

MarketWatch analyzed that the possibility of regulations in the U.S., following China, is also weighing heavily on the cryptocurrency market. If the U.S. moves to regulate stablecoins like Tether, which are pegged to the value of the dollar, it is judged that the entire coin market will inevitably be adversely affected.

According to the White House, President Joe Biden met with financial regulatory agency heads on this day, but there was no mention of discussions about cryptocurrencies.

This content was produced with the assistance of AI translation services.