Crypto recovery stalls as miners halt Chinese operations due to scrutiny

SINGAPORE (Reuters) – Cryptocurrencies fought to find a footing on Monday after even weekend cheerleading from Tesla boss Elon Musk seemed unable offset selling pressure from spooked investors or nerves stemming from a gathering crackdown on the asset class in China.

Musk had lent a bid on Saturday by tweeting support for crypto in “the true battle” with fiat currencies.

But on Sunday prices slumped as “miners,” who mint crypto by verifying transactions, halted Chinese operations in the face of increasing scrutiny from authorities.

Bitcoin climbed as high as $35,970 from Sunday’s trough at $31,107, but the growing sense of a shakeout flowing through the frothy market left it struggling to make further gains and it remains some 45% below last month’s record peak of $64.895.