Bitcoin Plunges to $60,542 after Hitting an All-time High $68,990

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Volcano-Powered Bitcoin Mining
Volcano-Powered Bitcoin Mining

Bitcoin and several other cryptos plunged on Tuesday after standing near-record highs.

The largest cryptocurrency in market value plummeted to $60,000. Bitcoin recovered to around $60,542, a 5% decrease in 24 hours, according to data by Coin Metrics. On the other hand, Ether, fell 6% to $4,229.

The reason behind the plunge is still unclear.

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China’s state planner, the National Development and Reform Commission (NDRC), said during a press conference Tuesday that it will continue to eradicate crypto-mining in China.

The Asian country is leading a major crackdown on Bitcoin and cryptocurrencies. Earlier this year, China banned all digital tokens, crypto mining, ICOs, and everything related to decentralized finance. Beijing argued that the energy consumption that mining causes is a great concern.

Mining “causes large energy consumption and carbon emission. It has no active impact to lead industry development or scientific progress,” NDRC spokesperson Meng Wei said on Tuesday, according to a CNBC translation of her Mandarin comments.

“Regulating cryptocurrency mining activities has significant meaning in optimizing our industrial structure, saving energy and cutting emission, achieving carbon emission and neutrality goals.”

The country is aiming to reach carbon neutrality by 2060, according to President Xi Jinping.

The NRDC will shift its focus to state-owned companies involved in crypto-mining. Additionally, it will impose “punitive electricity prices” against participators in cryptocurrency mining while allowing them to pay a residential electricity price. China’s efforts to eradicate cryptocurrency mining started earlier this year and is continuing to increase.

Several times, the Chinese authorities were throwing negative crypto-related comments. The critics caused a major sell-off in cryptos, leading to a price plummet of several digital tokens.

Price plummets after record highs

In November, several cryptocurrencies reached their all-time high records. For instance, Bitcoin went as high as $68,990.90 on Nov. 10 with Ether breaking its all-time price one day later.

“I think we’re seeing a healthy pullback after a 7-week rally from 40K to 69K, which is normal in an upward trend,” Vijay Ayyar, head of Asia Pacific at cryptocurrency exchange Luno, told CNBC via email.