China’s crypto crackdown is a sign of global unease with the asset class

on

|

views

and

comments

- Advertisement -

China’s cryptocurrency ban: crippling blow or minor setback on the way to acceptance?

After China made all cryptocurrency-related transactions illegal, the digital currency market slumped. Recently, Bitcoin and other cryptocurrencies have lost a lot of their value. Cryptocurrencies like Bitcoin and Ethereum have fallen considerably, down to as much as the 10%. Individual tokens fell even more significantly: Ether has fallen nearly 13% compared to less than a month ago.

“This is just the latest move in a multi-year clampdown on Bitcoin and cryptocurrencies,” says Antoni Trenchev, managing partner and co-founder of Nexo. “It’s not looking good for them at the moment. Their days are numbered.”

Here are some reactions from analysts following the market:

- Advertisement -

According to Chen Arad, chief operating officer at Solidus Labs:

“Though China’s move is particularly dramatic, it reflects on similar concerns regulators globally are sharing surrounding crypto market integrity and its role in illicit activity. Manipulation and fraud is not unique to crypto but, as a new asset class, digital assets present new challenges and have more to prove to regulators and the public.”

Brent Donnelly, president of Spectra Markets and a former HSBC FX trader, said:

“Solana Summer is over, the Loot frenzy looks like a major peak for NFT (non-fungible token) mania, the El Salvador launch on September 7 was the ding dong high for BTC (predictably),” he wrote. “It will be interesting to see how crypto trades in Q4 in the face of reduced global monetary accommodation and a lack of fun stories. My guess is that crypto struggles for a while.”

Steven McClurg, the CIO of crypto fund-manager Valkyrie Investments, said:

“China has banned crypto at least a dozen times this year. The volatility we are seeing today may be a knee-jerk reaction by some, but most market participants have already priced a China ban in from the beginning of the summer.”

Chris Dick, a London-based quant trader at crypto trading firm B2C2:

“If the headlines are just stronger wording ahead of China’s own digital currency, or if China is just reiterating it’s stance on mining, then there is no lasting effect here,” he said. “If, on the other hand, the crackdown affects key market infrastructure such as the major exchanges then the market volatility is set to increase further.”

- Advertisement -

George Monaghan, the Senior Analyst at GlobalData’s Thematic Team, said:

“China ruling crypto transactions illegal would be disastrous for the cryptocurrency sector. Being excluded from the world’s largest market is terrible for any product, and this is the strongest demonstration yet of China’s anti-crypto sentiment,” Monaghan said. “However, this isn’t the first time China has threatened action, and, thus far, it has failed to follow through. The next few weeks will be rough for crypto markets that were already on edge after the SEC’s recent comments, but only actual legislation will have a long-term effect.”

Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

- Advertisement -
Share this
Tags

Must-read

0x ZRX White Paper

Hello and welcome to this blog post about 0x ZRX White Paper. I am very excited to know that you are interested in this...

0x ZRX

0x ZRX is an open-source protocol for powering decentralized exchange of tokens and assets issued on the Ethereum blockchain. https://www.youtube.com/watch?v=-UMhhM5z7cc Website ...

Recent articles

More like this

LEAVE A REPLY

Please enter your comment!
Please enter your name here