Dogecoin has gone into free fall over the last 24 hours. As of the time of this writing, DOGE is down over 28% in the last day to just over $0.18 per coin. That’s its lowest level since mid-April and a four-fold decrease from its highs back in May.
So why is Dogecoin crashing? It has to do with China.
China is not a fan of cryptocurrencies and on Friday, authorities in the Sichuan Provence ordered all cryptocurrency mining operations to close. This is a big problem not just for Dogecoin but all cryptocurrencies because Chinese miners are responsible for 65% of cryptocurrency mining in the world and the Sichuan Provence is the second-largest mining region in China, reports Reuters.
And then on Monday, Chinese authorities took another step against cryptocurrencies. The country’s central bank called on payment firms like Alipay and banks including the Agricultural Bank of China and ordered them to crack down on cryptocurrency trading. Both firms said they would comply. China has repeatedly said it sees cryptocurrencies as too volatile—it also happens to be developing its own.
If it’s any consolation to Dogecoin traders, China’s move did not target DOGE specifically, but the entire cryptocurrency market, causing a broad selloff in cryptocurrencies across the spectrum in the last 24 hours. However, DOGE is definitely one of the coins that is worst affected. At just over $0.18 per coin, the cryptocurrency is now far off from the magic $1 mark, which just a month ago many speculators were saying it would easily hit.