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China Bans, Bitcoin Crashes
Editorial Team

Chinese regulators have decided to ban the operation of “all” virtual currency exchanges throughout the region, giving them a two-week time deadline. At the press time, two leading local exchanges have announced their compliance with the instruction, and defined the ceasing of their operations by the end of the month, as the previous rumors have been transformed into reality.

All the investors are ordered by the exchanges to withdraw all their deposit by the end of the month. However, investors are not the one who are wrong due to the turmoil. Thousands of skilled and experienced employees will be fired. A booming industry is shuttering down suddenly and unjustified, due to the fear of free market prevalence.

Talking about numbers, this turmoil caused a shift in overall market capitalization of cryptocurrency. Market cap fell below $100 billion this morning after the rapid developments. None of crypto coins could resist to the downward trend, with Ethereum Classic, Litecoin, and Bitcoin cash being the hardest hit among those in the top 10 list.

However, during the day, some recovery gains were recorded.  The all-time high of Bitcoin price of $5.013 on September 1 is a “distant image,” but the phase is considered to be reversible by many analysts. The announcement of China’s authorities regarding the closing of all local virtual exchanges by the end of the month, and the immediate compliance of two of the leading exchanges, via BTC and BTCC, to the “bad news”, consisted of a big wound to the marketability of Bitcoin.

Globally, China is doubtlessly a major location for Bitcoi, and its decisions influence the market makers opinion about crypto. For instance, Levej CEO Bharath Rao, reassures the investors, stating that the price is always a solid metric of the market’s greed and fear, and reflects regulatory uncertainty now.

The nervous reaction of Chinese investors is justified, but it cannot last forever.

According to Levej, this situation could be a signal that the decentralized model of crypto will accelerate by nudging the crypto community to develop a high speed, non-custodian exchange.

Jason English of Blockchain alliance Sweetbridge continued saying that it is hard to believe that China wants to leave a such promising market permanently. To him, the consequence of the ICO prohibition may create a chance for some investors for a new sell-off and buy-back strategy.

 

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