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Cryptocurrency: Reason for Crashing

Cryptocurrency: Crashing As Much As 30% Within 24 Hours:

The cryptocurrency market saw a big correction with prices of major currencies, including Bitcoin, Ethereum, BNB, and others crashing as much as 30% within 24 hours.

China announced:

  • This came in the backdrop of Chinese regulators announcing a crackdown on cryptocurrencies.
  • China has barred financial institutions and payment companies from providing any services related to cryptocurrency transactions.
  • This means that banks and online payment channels must not offer clients any service involving cryptocurrencies, such as registration, trading, clearing, and settlement.
  • China had issued such a ban in 2017 as well, but compared with the previous ban, the new rules have expanded the scope of prohibited services, and surmise that “virtual currencies are not supported by any real value”.
  • While the Chinese announcement was the straw that broke the camel’s back, Bitcoin and Ethereum were on a decline since last week when Tesla CEO Elon Musk announced that the electric carmaker won’t be accepting Bitcoin as payment — a reversal of an earlier decision.

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