Bitcon tumbles to nearly $30,000 amid China's crackdown on cryptocurrency mining

Bitcoin's slide continues as it nears $30,000 amid China's crackdown on cryptocurrency mining. The crypto dipped 3.65 per cent to $32,908 on Tuesday morning, according to CoinMarketCap index. It has suffered a dip of 18.62 per cent over seven days. Bitcoin's dip is now stoking fears of a deeper selloff. Ethereum fell 5.59 per cent to $1,970.25, while Ether dropped 0.10 per cent.

The sector has come under immense pressure after the People's Bank of China summoned officials from its biggest banks as well as AliPay to reiterate its ban on cryptocurrency services, according to sources.

As evinced from the downward spiral, Bitcoin is not far away from hitting $30,000. If that happens, then it would mean a 'massive hit' to sentiment and could see heavy selling activity across the market, Pankaj Balani, CEO of Delta Exchange told the news site. However, not all is lost as Balani believes that the coin will rebound to $40,000 in coming weeks.

Beijing has ordered a clampdown on cryptocurrency miners following concerns about environmental impact. The northern region of Inner Mongolia also banned mining and introduced a telephone hotline for reporting of suspected operations. Chinese government is putting immense pressure on local governments to reduce energy intensity as the country aims to reach peak output of greenhouse gas by 2030 and achieve carbon neutrality by 2060. Long hours of running computers to produce Bitcoin is detrimental to the plans. The digital coin had reached a peak of $65,000 in April.