Bitcoin (BTC) Price Rebounds After Weekend Selloff on Fresh China Concerns

Bitcoin (BTC) price is trading over 5% higher today to return trading above the $35,000 mark after another selloff yesterday. The world’s largest digital asset lost nearly 7.5% Sunday on fresh concerns about China’s official stance towards cryptocurrencies.

“The asset class continues to be highly volatile, with the potential of significant price movements resulting from a single tweet or public comment,” CIBC analyst Stephanie Price said in a note.

“Even with [last] week’s selloff cryptocurrencies have had an incredible run over the last year,” Price said.

On Friday, the China State Council committee reiterated its stance it plans to crack down on miners going forward.

"Many miners keep much of the bitcoin/ETH etc that they mine and don't hedge it all into fiat right away," said James Quinn, managing partner at Q9 Capital.

"If they are pulling up stakes or shutting down, they may need to reduce their balance sheets in the short term."

In response, an arm of the cryptocurrency exchange Huobi said it has halted crypto mining services done on the behalf of its China-based clients. Similarly, crypto miners BTC.TOP and HashCow said they will stop buying new Bitcoin mining rigs as they await more clarity on the industry’s outlook.

Bitcoin price moved to print a low of $31,111 as the price action continues to trade well below the 200 daily moving average at $40,384. The next major support on the downside is located at $28,500.

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