This Tuesday has been bad for Bitcoin, as the leading cryptocurrency dropped to a six-week low. According to experts, this is a reaction to the regulation issues and reports of an escalated crackdown happening on the crypto market in China.
It seems like the other leading digital currencies in terms of market cap are following the sink of Bitcoin, and have fallen significantly. The current stats (at press time) say that Ethereum has also sinked 12% in one day and Ripple did the same – falling down to $1.49 and marking a near-20% decline.
Still, Bitcoin is in the main focus as its price fell below $12,000 for the first time since December. Even though currently it sits at $12,365, the recent drop marked a six-week low. This Monday, Bloomberg reported that the authorities in China were planning to block the domestic access to Chinese and offshore cryptocurrency platforms that allow centralized trading. The regulators will also target people and companies that provide the market-making, settlement as well as clearing services for centralized trading.
A major Chinese central bank also reported that authorities should ban the trading of digital currencies mainly because they are adding weight to concerns of further suppression of the crypto market.
Still, the dip is not wholly unexpected according to some crypto experts. Iqbal Gandham, the UK managing director at eToro thinks so, after emailing the following comment:
“The market is correcting off the back of news that China is moving to crack down on cryptocurrency trading. Chinese investors are likely spooked having heard the news and the market is on edge as a result. But we don’t expect to see a major sell-off. Bitcoin in particular has gone through this cycle before … Moreover, it you look at the last three years, January is typically the low point for cryptocurrencies. So this dip is not wholly unexpected,”
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