The China’s squeeze on cryptocurrencies caused a rapid collapse of Bitcoin and other currencies. The impact of the Chinese Central Bank’s decision was almost immediate on the value of cryptocurrencies which suffered a rapid collapse with Bitcoin losing more than 7%. The decline could also continue over the next few days after the Chinese stance.
China takes sides against cryptocurrencies: Bitcoin and other currencies collapse
The Central Bank of China has defined all transactions and activities in digital currency as illegal. The Chinese authorities therefore, they confirmed the harsh and firm repression on the markets against the use of digital currency. As expected, this stance resulted in a rapid collapse of all major currencies. The market remains alive and vigilant on what the next developments will be.
The value of cryptocurrencies collapses
The Bitcoin, following China’s decisions on cryptocurrencies, marks a drop of -7.56%. Also noteworthy is the decrease in Ether which records a reduction of -10,16% of its value. It gets worse at Litecoin which records a reduction of -11.16%. Significant drop also for Dogecoin which moves back from8.7% following the Chinese decisions.
The decline, over the next few days, could be followed by a rebound with new growth but in the long run, China’s position risks giving a severe blow to the value of cryptocurrencies. Further updates on the issue will certainly arrive shortly.