GOLDWELL：Daily Market Recap – BTCUSD Plunges below $30,000 for the first time in five months

The price of bitcoin fell below $30,000 on Tuesday for the first time since late January, with the leading cryptocurrency suffering from Chinese efforts to regulate the decentralized market.

Many bitcoin mines in Sichuan were closed on Sunday after authorities in the southwestern Chinese province ordered a halt to crypto-currency mining, according to a report by the Communist Party-backed Global Times newspaper. According to the newspaper, more than 90 percent of China's bitcoin mining capacity has been shut down.

Separately, the People's Bank of China said Monday that it had urged Alipay, the payment service run by Alibaba subsidiary Ant Group, and some major banks to crack down on crypto-currency trading. China has already banned financial institutions from providing crypto-currency-related services.

“All the hype/speculation is doing is luring retail investors before the mother of all crashes,” Burry wrote on Twitter before the posts were deleted. “When crypto falls by trillions, or meme-stocks fall by tens of billions, #MainStreet losses will approach the size of countries. The story hasn't changed.”

In the short term, Bitcoin is back down after bouncing off support at the 20-period descending moving average with an evening star pattern last Tuesday signaling the end of the short-term bounce.

(Chart Source: Tradingview 22.06.2021)

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.