Chinese mullet concerns bitcoin exchange

It has been a tough month for bitcoin and anyone who has invested their money in the cryptocurrency. Last week the exchange rate plunged sharply and when it was at its worst it had dropped over a quarter of its value, from just over $ 10,000 per digital money, down to just over 6,500 on Monday.

Ludvig Öberg is a Swedish bitcoin entrepreneur and is a member of the board of the Swedish bitcoin association, a non-profit association with an interest organization in favor of the cryptocurrency. He owns bitcoin himself and is thus one of the affected, but he points out that it belongs to high risk investments.

"Cryptocurrency in general is a high-risk investment that one should be aware of when swinging extremely occasionally," he says.

While the value of the currency has in recent days recovered somewhat to $ 7,630, the least shaky market has caused widespread concern. The latest major changes - both the peaks and the valleys - have in turn been linked to the giant economy China and its view of the cryptocurrencies.

Last month, Chinese leader Xi Jinping gave a speech in which he spoke warmly about the blockchain technology on which bitcoin is based, for example, which caused the value of the currency to rise. But in practice, China has adopted a tough policy against cryptocurrencies and on Friday, China's central bank promised to continue with its tough stance, according to CNBC.

"This was one of the worst weeks in the history of digital assets," said Jeff Dorman, chief investment officer at Arca, over the weekend.

- The market is clearly contracting, with no new money coming in.

One conclusion from several observers is that China seems ready to embrace blockchain, but that it does not include cryptocurrencies.

"It's the realization that the positivity surrounding Xi's blockchain announcement was exaggerated," Jamie Farquhar of London-based crypto company NKB Ground told Reuters.

- It may be that it does not currently include bitcoin.