}
In the 24 hours we left behind, Bitcoin from 12%; Ethereum lost more than 20% in value. The decline that pushed Ethereum below $ 2,000 may have been triggered by fearful investors in China.
Ethereum, which traded above $ 3,500 earlier this week, dropped below $ 2,000 for the first time since the beginning of April on the last day of the week, according to Coinbase data. The wider picture on CoinGecko shows that the total value of the cryptocurrency market has declined by more than 18% in 24 hours to $ 1.38 trillion.
It is thought that the effects of the news coming from China on Friday are still felt and cryptocurrency prices may be falling because of this.
Investors started selling in fear
The Deputy Prime Minister of China announced that tighter measures will be taken against Bitcoin mining and transactions in the country. According to the data on the day of the announcement, the decision did not cause an increase in the selling pressure from the miner. Moskovski Capital CIO Lex Moskovski said that there is no data yet to indicate that Chinese miners have started selling.
Individual investors may not share the composure of miners. Chinese journalist Wu Blockchain commented on the current decline of the market in terms of Ethereum and made the following suggestion:
“Chinese investors are worried that the government is banning trading with yuan-to-crypto pairs. Some investors sell their cryptocurrencies out of fear of not being able to convert them into fiat currency. That may be the reason for today's decline. "
There are other developments that show an atmosphere of fear among Chinese investors. While the crypto currency exchange Huobi stopped selling mining devices to citizens residing in China; OKEx announced whether OKB, its own cryptocurrency, can be traded with yuan. Both of these are stock exchanges that were established in China and later changed their headquarters.
According to 24-hour data, OKEx's crypto currency OKB is from 20%; Huobi's own crypto, Huobi Token, fell more than 27%.
“Hope for the best; prepare for the worst "
Although speculation has begun on social media about the consequences of the decision taken by China, it is not yet known what kind of practices the "strict measures" expressed by the government are pregnant.
"If an official of this level of the Chinese Communist Party makes a decision, the draft of how to implement that decision is usually prepared before the decision is announced," said Dovey Wan, co-founder of Primitive Crypto, in his statements today. said. Wan said that is why these "stringent measures" could take effect within 10 days.
Saying that Chinese miners have already started to migrate and some mining facilities may move to countries such as Pakistan and Kazakhstan, Wan said, "Keep an eye on the hash rate in the coming days." said. His advice to investors is, “Hope for the best; prepare for the worst. " happened.
Published on LERNblogs.com