Bitcoin slumps in wake of China crackdown

Small toy figurines are seen on representations of the Bitcoin virtual currency displayed in front of an image of China's flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration

TOKYO, June 21 (Reuters) - Bitcoin tumbled as much as 9% on Monday as recent volatility in the cryptocurrency market showed no signs of dampening down, with market players citing thin liquidity and China’s expanding crackdown on bitcoin mining.

Bitcoin fell as low as $32,288, its lowest in 12 days, and was last down 7.5%. If sustained, the drop would be its biggest in around a month.

Authorities in the southwest province of Sichuan on Friday ordered cryptocurrency mining projects to close. The State Council, China's cabinet, last month vowed to clamp down on bitcoin mining and trading as part of a series of measures to control financial risks. read more

"Crackdown on Chinese miners might mean that they are offloading coin into a thin market and taking us lower," said Ben Sebley of London-based crypto firm BCB Group.

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