The world’s most popular cryptocurrency, Bitcoin, fell below $7,000 on Sunday for the first time since May.
The price of Bitcoin / USD (BTCUSD) reached about $6,850, after falling about 24% during the last month. Last June, the world’s most famous cryptocurrency hit the $9,000 mark for the first time in more than a year, and then continued to rise above $31,000.
The main reason for this latest bitcoin stumble is due to China’s recent announcement that it will eliminate cryptocurrency trading. A statement issued by the People’s Bank of China on Friday warned that it was increasing “supervision and control to combat virtual currency transactions.”
“Investors should be careful not to mix blockchain technology with virtual currency,” the central bank said, warning of the many risks of cryptocurrency trading.
There has also been speculation in recent months that China is preparing to launch a state-run cryptocurrency, although the bank rejected the report earlier this year.
Bitcoin is not the only digital currency to suffer because of its falling price.
However, the price of Bitcoin has reached 85% per year so far, while Ethereum has reached only 8% and Ripple down 37% in 2019.
As of Sunday night, Bitcoin had a market capitalization of $126.3 billion, while Ethereum had a market capitalization of $15.5 billion, followed by Ripple at $9.7 billion.