The largest cryptocurrency Bitcoin fell 4.6% to $42,874, while the smaller coins commonly traded alongside Bitcoin also plummeted. Ether is down more than 8% while XRP is down 7%.
Bitcoin fell nearly 5% on Friday after China’s central bank announced it would crackdown on cryptocurrency trading and ban currency exchange services to investors in mainland China.
The largest cryptocurrency fell 4.6% to $42,874, while the smaller coins commonly traded alongside BTC also plummeted. Ether is down more than 8% while XRP is down 7%.
The People’s Bank of China also said it would prevent financial institutions, payment companies, and internet companies from facilitating cryptocurrency transactions and strengthen monitoring of the risks of such activities.
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In general, the cryptocurrency market is in a very fragile state, and this type of recession proves it. Joseph Edwards, research director at cryptocurrency brokerage Enigma Securities, said there is a certain level of panic in the air and further stated that cryptocurrency will continue in China territory. He stated
“Bitcoin and other crypto-assets will continue in the gray area under the legality in China.”
US-listed mining companies Riot Blockchain, Marathon Digital, and Bit Digital moved between 4.1p, putting pressure on the stock prices of cryptocurrencies and blockchain-related companies.
Bitcoin (BTC) sellers have been active during Asian business hours after the Central Bank of China ruled out crypto-related illegal operations. BTC fell 3% in the last 24 hours to below $42,000. Bitcoin got the initial resistance at $40,000 and stabilized itself there. The largest cryptocurrency Bitcoin fell 4.6% to $42,874, while the smaller coins commonly traded alongside Bitcoin also plummeted. Ether is down more than 8% while XRP is down 7%.
A series of lower highs at the $50,000 resistance level reflects a slowdown in bullish momentum this month. Short-term buyers may defend lower support levels over the weekend, but the medium-term uptrend has weakened.
