Bitcoin is down today as traders speculate on the potential of the United States changing its monetary policy and China tightening its cryptocurrency rules.
The world’s most valuable cryptocurrency is down more than 8% today, trading at $32,900 from approximately $36,000, however it appears to be recovering. The decline is the most significant in a single day, the cryptocurrency has been losing money since May 28, owing to sale pressure fueled by waning positive market mood.
The cause for the sell-off is China’s continued pressure on cryptocurrency mining and trading, as the country targets Weibo accounts of prominent bitcoin thought leaders. The country has disabled these individuals’ accounts, citing violations of Weibo standards and “related laws and regulations.”
FUD (Fear, Uncertainty, and Doubt) has gripped markets throughout the world as investors consider the potential that the US Federal Reserve may begin to unravel its liquidity-boosting quantitative easing program. Though some argue that monetary policy tightening in the United States will have little impact on cryptocurrencies and gold, others argue that both asset classes are resilient.