On Friday, the cryptocurrency market tumbled following China’s central bank latest decision on crypto-asset trading, losing nearly $190 billion in the market value.
Per CoinMarketCap data, the global cryptocurrency market plummeted by 9 percent, losing $188 billion to a low of $1.8 trillion a few hours after China’s apex bank announcement of its crackdown on crypto-related trading.
The day event eroded nearly all gains that the crypto market raked in in the past week since it recovered from past declines. Today, top cryptocurrencies including Bitcoin, Ethereum, and Solana plunged, losing 6 percent and 10 percent respectively.
Experts have expressed worries on Friday’s move by China on crypto trading, saying that other countries may follow suit by taking parallel action. One such is analyst Adam Crisafulli of Vital Knowledge Media, who noted that China’s announcement is “very consistent with its past rhetoric.” He also urged investors to be cautious at buying at current prices, stating the likelihood of Beijing’s move influencing countries with the biggest economies taking similar action.
The market is down for three reasons: China reiterating their anti-crypto, anti-freedom stance; US Fed putting taper in motion; running into big overhead resistance on chart at 45k, 3200. The secular story is as strong as ever but a price consolidation is going to continue.
— Mike Novogratz (@novogratz) September 24, 2021
In his own comment, Freddie Williams, of digital asset broker GlobalBlock, said he’s seen “little in the way of a knee-jerk reaction from clients” after the Chinese latest ban. He added that the market would recover as soon as the fear subsides.
He further says that despite frequent Chinese crackdowns on Bitcoin and cryptocurrency, it has not affected the growing adoption. Particularly in the U.S.