The catalyst for the Sunday slump was cryptocurrency ‘miners’ — who mint cryptocurrencies by using powerful computers to solve complex maths puzzles — halting Chinese operations in the face of increasing scrutiny from authorities. ― Reuters picLONDON, May 24 — Cryptocurrencies fought back today, retaking ground lost during a bout of weekend selling that was fuelled by further signs of a Chinese crackdown on the emerging sector.
Second-largest cryptocurrency ether jumped more than 17 per cent to as high as US$2,464 after slumping more than eight per cent yesterday to near a two-month low. Yet it too has fallen by almost half from peak hit earlier this month. The attention on miners in China — who account for some 70 per cent of supply — is the latest front in a wider push by Beijing against the cryptocurrency sector.
In the short-term, market players said, that is likely to lead to pressure on prices as miners sell bitcoin held on their balance sheets.
Source: Digital Coin News (digitalcoinnews.net)