Cryto currencies have seen a big drop in price following reports of another Chinese ban. The reports claim that China is to ban cryptocurrency exchanges.
According to reports circulating the Internet the ban will prevent people from buying and exchanging Crypto’s, including Bitcoin and Ether from Chinese exchanges. The news has seen both Bitcoin and Ethereum drop around 14%.
Why has this caused the price to fall so drastically?
It appears that holders of Crypto currency fear not being able to exchange their coins should the ban take place. This has caused many to panic sell. Whilst holding cryptocurrenies are not included in this proposed ban, many are fearful that they will hold asset in which they cannot dispose of in the future.
China’s battle with the crypto world
Last week we saw China’s move to ban ICO’s with the suspension of many ICO initiatives. China’s battle with the way cryptocurrenices currently operate has been longstanding and it does not appear that this will change anytime soon.
Will this downtrend continue?
As always predicting the Crypto market is extremely difficult, news and government bans/regulations will continue to impact prices.
We do expect other countries to follow China and introduce more regulation on cryptocurrencies, however this may not necessarily mean that cryptocurrency prices will not increase in the long term.
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.