China seems to have had it with Bitcoin (BTC/USD), and cryptocurrencies in general. The country’s central bank recently started another crypto crackdown, aimed at pushing the Bitcoin miners out of the country. This already caused Bitcoin’s price to crash over the weekend and bring it to lower $30,000s.
Furthermore, China also insisted that other banks, lenders, and even Alipay immediately stop providing any kinds of services to anyone connected to crypto. The move had far-reaching consequences, especially when it comes to discouraging others from engaging with crypto.
CNBC’s Jim Cramer is a perfect example of this, noting yesterday, June 21st, that he’s sold most of his Bitcoin holdings. “Sold almost all of my bitcoin,” he said on Squawk on the Street, “Don’t need it.”
Why is China so anti-crypto?
Only two months ago, he noted that he trimmed his position and managed to pay off a home mortgage with the profits he made with it. However, his change of attitude towards the digital currency is not surprising. On top of that, he is likely only one of the investors and traders who are heavily concerned about the future of the money they invested.
The price of Bitcoin dropped by 6% this Monday to around $33,000 per token, and it kept dropping on Tuesday, June 22nd, as well. As mentioned, the drop followed China’s recent attempt to push Bitcoin miners out of the country, in continuation of its years-old crypto crackdown.
Cramer mentioned this as well, noting that when the People’s Republic of China is after something, it usually gets it. “It’s not a democracy. It’s a dictatorship,” he said, adding that he thinks that China is very much concerned about BTC, as it is a direct threat to the local regime. Bitcoin cannot be controlled by the country, its officials, or its banks. As such, it gives people freedoms that China is not a fan of.
With China making its move, it still remains to be seen how the US will react and what it might do in regards to Bitcoin, although Cramer doesn’t like the way things have been going lately. So, he decided to abandon crypto for the time being.