As the cryptocurrency market recovers from the crash it suffered in April-May – mainly due to the tightening of Chinese regulations on cryptocurrency trading and mining – another wave of crackdown by the China has left the market in the red. Chinese regulators have stepped up their hammering on these digital assets, imposing a blanket ban on all cryptocurrency transactions and mining in the country this week. As a result, over $ 400 million (approximately Rs. 2,952 crore) of crypto coins were liquidated in one day. This renewed effort to contain cryptocurrency trading has resulted in a significant loss in value of major currencies such as Bitcoin and Ether.
According to data from Bybt, a cryptocurrency exchange and information platform, more than $ 418 million (roughly Rs 3,085 crore) has been wiped off the market. At the time of writing, according to Bybt data, more than $ 326 million (roughly Rs. 2,406 crore) has been liquidated by 80,563 traders in the past 24 hours, meaning the initial panic was giving way to stability. The largest liquidation order occurred on Okex-BTC with a value of $ 6.82 million (approx Rs. 50 crore).
On Friday, shortly after the People’s Bank of China made cryptocurrency trading illegal and said it planned to severely punish anyone who did, Bitcoin lost more than $ 3,000 (around Rs 2.21 lakhs .) within one hour. At one point, it slipped below $ 41,000 (around Rs. 30.26 lakhs) but has since fallen back to $ 42,733 (around Rs. 31.54 lakhs), according to CoinMarketCap.
The crackdown in China began this year when authorities began warning banks to suspend virtual currency transactions and shut down much of Bitcoin’s mining business operating in the country.
This had resulted in the crash in April-May, when, for example, Bitcoin fell below $ 30,000 (around Rs. 22 lakhs). He gradually recovered and passed the $ 50,000 mark (around Rs. 37 lakhs) at the end of August. But this renewed focus on curtailing cryptocurrency-related activity has once again raised concerns among investors that the market is heading for a bearish turn.
Cryptocurrency is unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by The Bharat Express News. The Bharat Express News will not be responsible for any loss resulting from any investment based on a perceived recommendation, forecast or any other information contained in the article.