CryptoCurrencies sinking following China’s crackdown

Enter The Crypto > Alt Coin > CryptoCurrencies sinking following China’s crackdown

This week has seen CryptoCurriencies take another major hit following reports that China are to set to ban exchanges.

 

As stated in our post last week China are set to prevent exchanges from trading. The news saw all the major Crypto’s take a big hit last, which has now deepened following reports circulating that as of today (Friday 15 September 2017) exchanges in China are to stop accepting new registrations. Reports also state that China have ordered that exchanges notify their users of their imminent closure.

 

BTCChina – a major Chinese exchange, have already stated that they will cease trading as of 30 September due to the tougher regulations that are to be imposed by China. Other Chinese exchanges have followed suit and confirmed that they will also cease trading. We expect more news from Chinese exchanges today.

 

The crackdown by China has caused a massive panic sell which has continued from last week. Bitcoin has fallen to $3000 and Ethereum to $200. This is not the first time China has caused a massive drop in price. In January China banned withdrawals of Bitcoin for a period causing Bitcoin to drop 40% in value. A previous ban in 2013 preventing deposits from a Chinese Bank to buy Bitcoins caused the price of Bitcoin to drop over 80%. On both occasions Bitcoin recovered and actually extended its gains.

 

It is a very interesting time for CryptoCurrencies and as previously stated we expect further regulations and speculation to influence the price of Crypto’s. We are likely to see a lot of volatility in the coming months. This could also be a great opportunity for those living outside China to profit on this massive drop and buy Crypto’s for low prices. We still believe that Bitcoin and Ethereum, along with many others will surpass their all-time high in the long term.

 

As always be extremely cautious in investing in Crypto’s, the market can be very unpredictable and unstable. News on crackdowns and regulations seem to be appearing on a daily basis and even rumors, without being verified are having an impact.

We are not investment or financial advisors and are here to provide news and our opinions. Please be fully informed regarding the risks and costs associated with trading the financial markets and the Cryptocurrency market, it is one of the riskiest investment forms possible.

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