Bitcoin Loses 30% of Its Value As China Enters With Its New Crypto Ban
Bitcoin’s price went 30% down, reaching the absolute minimum since February. It reached $38,500, losing $4,000 of its value in literal hours. At the moment of writing this article, it is traded for $40,623. All the crypto market followed it as it always does, and the Top-10 cryptocurrencies collapsed as well.
This collapse supposedly happened due to the announcement of the People’s Bank of China. They banned using digital tokens as a payment and even mentioning them as one for the financial and payment services. However, this announcement doesn’t come together with any real regulatory steps.
The market is being overheated in the last days, so the correction was expected. It ate up $2 billions from the market due to the liquidation of the traders’ positions, according to Bybt.com. $1 billion was liquidated in 4 hours.