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Bitcoin, Ethereum Drop as China Intensifies Crypto Crackdown

The Chinese government has again announced more bearish statements on crypto, iterating its ban on the use of “virtual currencies” from 2017.

2 min read
China is throwing its weight behind blockchain technology (Image: Unsplash)

The total market capitalization of all cryptocurrencies across the industry—essentially the combined price of all tokens in circulation—decreased by nearly 5% today after the Chinese government again made clear its negative stance toward digital assets.

“Recently, virtual currency trading hype activities have risen, disrupting economic and financial order, breeding illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes, and money laundering,” the Chinese government said.

Though this is not the first time China has condemned crypto, the prices of the vast majority of coins dropped nonetheless, only exacerbating the recent global market fears caused by a potential collapse of China’s property giant Evergrande.

At the time of writing, the price of Bitcoin has fallen by about 4.2% on the day, with the cryptocurrency trading at around $42,392. 

Other top tokens such as Ethereum (-7.7%, $2,899), Cardano (-1.1%, $2.22), Binance Coin (-7.4%, $351), Ripple’s XRP (-6.5%, $0.93), Solana (-7.3%, $138), Polkadot (-3.5%, $30), and Dogecoin (-6.6%, $0.2) are dipping as well.

Meanwhile, the “Bitcoin Fear and Greed Index,” a tool designed to measure the crypto community’s sentiments based on volatility, market momentum, social media posts, and other metrics, has held in the “fear” zone over the past days—compared to mostly “neutral” sentiments last week.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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