Bitcoin plummets to a six-month low on China crackdown

Bitcoin slumped to a six-month low on Friday (November 22) after China's central bank launched a fresh crackdown on cryptocurrencies.

Bitcoin, the world's biggest cryptocurrency fell 9%.

The People's Bank of China's Shanghai headquarters said it would tackle growing cases of illegal behaviour involving virtual currencies.

It also cautioned investors not to confuse crypto with blockchain technology - the digital ledger that underpins many cryptocurrencies.

The move came a day after regulators in Shenzhen launched a similar campaign.

The crackdown though comes as the PBOC prepares to launch its own digital currency.

President Xi Jinping said last month that China should accelerate the development of blockchain technology.

Bitcoin, which is known for its wild price swings, soared over 40% in two days after Xi's remarks.

Investors appeared to be betting that Beijing's plans would accelerate the mainstream embrace of cryptocurrencies.

But analysts say the positivity over the leader's comments may have been misjudged.

Bitcoin has slumped by nearly a third since October.