This is Why Bitcoin Tumbled to its Lowest Level Since May

Bitcoin enthusiasts have nothing to be enthusiastic about lately as the cryptocurrency has fallen to its lowest level since May.

The digital currency has dropped $3,000 in a month as China is cracking down on businesses that are involved in cryptocurrency operations.

The drop is ironic considering that it was only last month that Bitcoin rose to over $10,000 after China’s Xi Jinping called for the country to advance development in blockchain.

Bitcoin hit as low as $6,558.14 on Monday according to CoinDesk. It was on Friday that China’s central bank, the People’s Bank of China, said it would continue to target exchanges and asked investors to be wary of digital currencies.

“This was one of the worst weeks in the history of digital assets,” said Jeff Dorman, chief investment officer of Arca, to CNBC. “The market is clearly in contraction, with no new money coming in to soak up the supply.”

Despite the big drop, Bitcoin has still doubled its price since 2019 began. The digital currency was as high as almost $20,000 at the end of 2017.