Popular cryptocurrency Bitcoin fell to $36,279.11 as China blocked various accounts related to cryptocurrency on Weibo, China's Twitter-like social media platform, with a message reading 'each account "violates laws and rules"' but recovered slightly on Monday. Bitcoin traded at $35.946.06 on Sunday (June 6) midnight.
One of the crypto commentators or key opinion leader (KOL) who got blocked was known as "Woman Dr. bitcoin mini". Her last post on Weibo was, "It's a Judgment Day for crypto KOL".
China's Supreme Court is likely to publish a judicial interpretation to link illegal crypto activities with the Chinese criminal law, according to NYU Law School's adjunct professor Winston Ma.
Ma, who has authored the book 'The Digital War' also told Reuters these laws are likely since the Chinese government is in no mood to allow "Chinese Elon Musk" to exist in the Chinese crypto market. Bitcoin has been unpredictable due to the uncertainty surrounding the Chinese regulations around the digital currency.
"Uncertainty about China crypto regulations are still a headwind," head of over-the-counter and institutional sales at crypto derivatives exchange Jonathan Cheeseman FTX said. "So far it's been pretty piecemeal, focusing on mining, new issuance, and retail influencers, "Cheeseman added.
Chinese news agency Xinhua has also stepped up its reportage against the digital currency. China's state broadcaster CCTV also mentioned since crypto is a lightly regulated asset, it can often be used for purposes of black market trade, money laundering, arms smuggling, gambling and drug dealings.
Bitcoin was on a furious rising spree since the beginning of the year surging to almost $65,000 amid endorsement by Tesla founder and CEO Elon Musk and many other investors like Paul Tudor Jones and Stan Druckenmiller. Since then, the digital currency has fallen by more than $25,000 and is currently trading at $36, 279.11.
Edited by Mehak Agarwal; with agency inputs