[Bitcoin Now] Drops to 76 Million KRW Range... Chinese Authorities Crack Down, Errors Occur on Binance

China's National Development and Reform Commission Classifies Cryptocurrency Mining as an Obsolete Industry
Bitcoin Plummets to $8,200 on Binance, the World's Largest Cryptocurrency Exchange

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen to the 76 million KRW range. This is interpreted as a correction following the reflection of positive news regarding Bitcoin futures exchange-traded funds (ETFs) in the U.S. stock market. Meanwhile, Chinese authorities have classified cryptocurrency mining as an 'obsolete industry' and have stepped up pressure.

According to the domestic cryptocurrency exchange Upbit, as of 3:02 PM on the 22nd, Bitcoin was recorded at 76.81 million KRW, up 0.55% from the previous day. When the Bitcoin futures ETF by the U.S. asset management company ProShares was launched on the 19th (local time), the price rose to 81.75 million KRW, nearing an all-time high. However, it has since somewhat stalled. The all-time high for Bitcoin on Upbit was 81.99 million KRW, recorded on April 14.

China has once again moved to regulate the cryptocurrency industry. According to the Chinese state-run media Global Times on the 22nd, the National Development and Reform Commission (NDRC) of China issued new 'National Industrial Restructuring Guidelines,' classifying cryptocurrency mining as an obsolete industry. This is because the cryptocurrency industry wastes energy and increases carbon emissions, contributing little to the national economy.

Recently, China appears to be attempting to regulate cryptocurrency again amid a power shortage. Due to diplomatic conflicts between China and Australia, coal prices have surged, and at the same time, the Chinese government has strengthened eco-friendly policies, reducing China's power production. Additionally, Bitcoin mining is known to consume enormous amounts of electricity. According to the University of Cambridge in the UK, Bitcoin mining consumes 110 TWh (terawatt-hours) annually, which is comparable to Malaysia's annual electricity consumption.

Bitcoin on Binance, the world's largest cryptocurrency exchange, plummeted from around $65,000 to $8,200 due to an error. (Source=Binance US)

Meanwhile, on Binance, the world's largest cryptocurrency exchange, Bitcoin suddenly plunged due to a system error. According to the U.S. economic media Bloomberg on the 21st, at around 7:30 AM Eastern Time, Bitcoin's price plummeted from $65,605 (approximately 77.28 million KRW) to $8,200. Bitcoin's price has never been at the $8,200 level since April last year.

The time taken to fall and recover was only one minute, but investors reported damages. They had placed sell orders at low prices, which were executed instantly. A Binance official stated, "It appears that the sell orders occurred due to a bug in the trading algorithm," adding, "We are currently investigating, and the bug has been fixed."

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