“Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.” China’s authorities said in the statement.
The cryptocurrency market had become the new fantasy of people. New cryptos coming up and markets moving up and down on the “Twitter” factor. Moreover, cryptos like Dogecoin had almost “reached the moon”. However, On Wednesday, May 19, it all came crashing down. China’s new restrictions on cryptocurrencies led to losses in terms of billions of dollars in the market.
Earlier in the year 2017, China had banned cryptocurrency exchanges; following which, it is cracking down on other venues for the trading of digital currencies.
China warned the investors of potential speculation in the markets observing the unmatched volatility in certain cryptocurrencies. After the announcement, all major and minor cryptocurrencies; popular coins as Bitcoin, Etherium, and DogeCoin fell in the past 24 hours. Most of the coins plunged by over 40% intraday to their lowest levels in the past few months; creating panic among investors and the overall crypto market.
Not to mention, Bitcoin plunged as much as 22 percent to trade below $34000 level, while Ether cracked over 20 percent to give up the $2500 mark. The day saw around $1 trillion vanish in the air nowhere to return anytime sooner.
The decline in the two most traded cryptocurrencies was sparked last week by Elon Musk’s reversal on Tesla taking bitcoin as payment: Other tweets that caused confusion over whether the carmaker had shed its holdings of the currency. Noticing the unimaginable speculative price hikes, the “DogeFather” seems like runing a Tweet Market.
Such a market as the cryptocurrency has recently turned out into, are the investors actually safe? With no central authority how do a layman investor like me trust I don’t even know whom!