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2021 was a significant year for Bitcoin, because it broke the $30,000 mark in $30,000 and continued raising up like a rocket. In March its price hitted $60,000 and that was the absolute record for cryptocurrency.

According to CNET, on Tuesday morning Bitcoin went down and even lower $30,000 for the first time in 2021. That happened due to Chinese announcement that the country strengthened the ban of cryptocurrencies. Social media was awash with observers pointing out that 2021’s price gains have for now been neutralized.

The price has made the come-back since the original news and gained $34,000 at the time of writing.

Bitcoin didn’t suffer without the company. Ether, the second biggest cryptocurrency, fell to $1,730 which is the lowest price since March boost. DogeCoin also faced the drop of the price on Monday. The price hitted 17 cents, under a quarter of its all-time high of 73 cents. Both have also rebounded slightly, with Ether at $1,975 and DogeCoin at 19.8 cents. For reference, Ether’s all-time high is $4,132. 

China tightens cryptocurrency knots for the second time this year. In May, Chinese officials reaffirmed an old ban that forbids financial firms from actively aiding in the mining and selling of cryptocurrencies. The result was negative but crypto enthusiasts shrugged that the ban is nothing new. It was enshrined in 2013 and then sparsely enforced.

However, on Monday the government of the country demonstrated that it’ll extend the ban much more seriously. Key banks and financial services companies like Alipay attended a meeting by China’s central bank, the South China Morning Post reports, where they were told to crack down on cryptocurrency trading. The closure of 26 mining operations in Sichuan led to this order.

“Virtual currency transactions and speculative activity have disrupted the normal order of the economy and financial [system],” the central bank said in a statement on its website. “They increase the risks of illegal cross-border transfers of assets and illegal activities such as money laundering. “

Chinese Communist Party can see controversies in the decentralized nature of cryptocurrency. It contradicts the ideology to keep everything under control. Though shunning Bitcoin, Ethereum and other cryptocurrencies, China is working on rolling out its very own digital currency, the e-yuan. 

Bitcoin enthusiasts make a parallel line comparing the cryptocurrency to Google, whose share price continued rising after it was banned in the People’s Republic in 2010. They say that China neglects cryptocurrencies at its own peril, and that this will be a long-term positive for the US.

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