Why the Crypto Market is Down Today?

The cryptocurrency market is currently in a bearish run following China’s latest comments on Bitcoin mining, but the short and medium-term outlooks for the market remain positive, and Bitcoin could top the $70k level over the coming days and weeks.

The cryptocurrency market has experienced massive losses over the past few hours but could recover and rally over the coming days and weeks.

The Chinese government has always attacked Bitcoin and other cryptocurrencies. The government has never made it a secret that they disliked cryptocurrencies and are determined to root it out in the country.

The authorities came out again to speak out against cryptocurrency mining and blast Bitcoin. China’s state planner, the National Development and Reform Commission (NDRC), said during a press conference Tuesday that it will continue to clean up virtual currency mining in the country. The agency’s spokesperson Meng Wei blasted Bitcoin mining, stating that it consumes a lot of energy and generates a lot of carbon emissions. As a result, the NDRC is set to launch a full-scale clampdown on crypto mining in China and intends to eliminate the activity entirely.

China’s latest comments on Bitcoin mining led to the broader crypto market embarking on a bearish run. Bitcoin lost more than 10% of its value earlier today and dropped below the $60k mark for the first time in weeks. The other leading altcoins, including Ether, Binance Coin, Cardano, Solana, Polkadot, XRP and Dogecoin, all lost more than 7% of their values. The total cryptocurrency market cap also dropped to $2.6 trillion after reaching the $3 trillion mark last week.

BTC/USD chart. Source: FXEMPIRE

Crypto Market Outlook Remains Positive

The medium-term outlook for the cryptocurrency market remains positive despite the recent drawback. Bitcoin reached a new all-time high above $69k last week as analysts remain confident it could touch six figures before the end of the year.

The Taproot upgrade on the Bitcoin network also went live during the weekend, making it the first major upgrade on the blockchain since 2017. This has generated a lot of buzz within the crypto space as the update will improve the privacy, scalability and security of the Bitcoin blockchain.

Bitcoin could bounce back from the recent dip over the coming days and weeks and probably top the $70k psychological level.

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