Expert says price of digital coins to ‘remain volatile’ following China’s crackdown

Expert says price of digital coins to ‘remain volatile’ following China’s crackdown

May 20, 2021 0 By Antonio Manaytay
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An expert at World Economic Forum (WEF) said the price of digital coins will “remain volatile” amid crackdown by  which China undertook.

Digital coins took a dip following China’s crackdown sending ripples to the market.

Bitcoin, the world’s heavily traded cryptocurrency, plunged to as low as $30,202 per coin. It traded at $44,000 in the last 24 hours.

Several major cryptocurrencies such as Ethereum also plummeted. It hit rock bottom at below $2,000 per coin before it bounced back. Ether, another major crypto, had dropped Wednesday morning by 30 percent at $2,430.

Sheila Warren, WEF deputy head of the C4IR, expects the “bitcoin’s price to remain volatile.”

A hint of regulation, she said, could make the digital coins “hyper-responsive.”

“China’s move doesn’t necessarily presage similar crackdowns in other jurisdictions,” the WEF expert added.

She warned the move by Chinese authorities could “affect Chinese business innovation” of which has already been slow over concern on regulatory action.

China’s icy attitude towards crypto has started many years back.

Chinese regulators prohibited financial and other institutions to transact using the platform. While China does not ban the digital coins, regulators in 2013 did not acknowledge it as real money.

In 2017, Chinese authorities banned initial coin offerings. Such ban clipped tech startups’ ability to raise money by issuing tokens to the public.

The regulators warned of the risk of using bitcoin in money laundering. But their real fears lie in the country’s need to protecting yuan as fiat currency.

PHOTO: Pixabay photo

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