Bitcoin has dropped below $34,000 in recent days but has stayed around $32,000, unable to either break upwards or correct lower.

What Are The Causes Of Bitcoin’s Drop Below $34,000?

Following Monday’s advances, major crypto tokens fell back into the red as analysts warned that the values of Bitcoin and Ethereum are “in danger.“

It followed allegations that former Bitcoin (BTC-USD) and Ethereum (ETH-USD) miners in China were dumping GPUs (graphics processing unit), which is responsible for digital rendering in a computer system.

Bitcoin dropped 0.4% to $33,708 (£24,335) after gaining 2.7% to $34,340 in London on Monday morning. Other cryptocurrencies followed suit, with Ethereum falling 0.7% to $2,112 after rising 2.2%, and Tesla (TSLA) CEO Elon Musk’s favorite joke token, Dogecoin (DOGE-USD), falling 0.2% to $0.21 after rising 2.6%.

Liu Hu, China’s Vice-Premier, Vows To Harshly Punish Illicit Financial Activity

In May, Chinese Vice Premier Liu Hu said that the country will “harshly crackdown on illicit securities operations and severely punish illegal financial crimes.”

In June, China tightened its grip over the Bitcoin mining sector in its most important Bitcoin-producing areas, notably the southwest province of Sichuan.

The People’s Bank of China (PBOC) announced last month that it has ordered several big banks and service providers to take tougher measures against cryptocurrency trading.

The Agricultural Bank of China, the country’s third-largest lender by assets, has said that it will comply with the PBOC’s directives. It will also do background research on consumers in order to discover illegal Bitcoin mining and transactions.

In the meanwhile, China’s Postal Savings Bank declared that it would not support any Bitcoin transactions.

Global Governments Were Also Firmly Opposed To Cryptocurrency

Last month, the UK’s Financial Conduct Authority (FCA) voiced strong opposition to cryptocurrency. Binance Markets has been forced to delete all advertisements and financial incentives by June 30. 

Banks have also taken action; Santander has informed clients that it will no longer accept payments to Binance.