Red color covers the virtual currency market, Bitcoin drops to USD 61,000

Bitcoin and other digital currencies collapsed on November 16.

Bitcoin fell to nearly $ 60,000 on the morning of November 16, before recovering slightly, according to data from CoinDesk. At 1:22 p.m., Bitcoin is hovering at 60,895 USD, decreased by more than 7% in the last 24 hours. Similarly, Ethereum also plunged nearly 8% to 4.33. away1 USD after sometimes over 4,800 USD in last week.

The reason for the decline in the cryptocurrency market is still unclear.

During a press conference on November 16, China’s National Development and Reform Commission (NDRC) said it would continue to “clean up” cryptocurrency mining in the world’s second largest economy.

Earlier this year, China took control of virtual currency mining and sparked a wave of virtual currency miners who fled overseas. Mining uses a lot of energy to create new coins and record all transactions.

Beijing is concerned about the amount of electricity used to mine cryptocurrencies.

Cryptocurrency mining “uses a lot of electricity and pollutes the environment. They have no positive effect in promoting industrial development or scientific research, “said NDRC spokesman Meng Wei on November 16.

“The control of cryptocurrency mining is of great importance in order to optimize industrial structures, save energy, reduce pollution and achieve carbon neutrality,” he added.

In 2020, China’s President Xi Jinping said China would achieve its goal of becoming climate neutral by 2060.

Negative comments from Chinese authorities on virtual currencies have sparked a wave of virtual currency sales, even if these statements are not so new.

Vu Hao (according to CNBC)

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