As China is sending more negative news to the crypto market, altcoins are once again suffering the most.
Bitcoin (BTC) dropped from USD 41,760 to below USD 37,000 in half an hour and continued correcting lower. At 19:53 UTC, it trades at USD 36,082 and is down by 10% in a day. Meanwhile, ethereum (ETH) dropped by 16%, reaching USD 2,355, while multiple altcoins are bleeding even more.
USD 253m worth of trading positions in the crypto derivatives market were liquidated in the crypto derivatives market in the past four hours, per Bybt.com data.
China will crack down on bitcoin mining and trading activities as part of efforts to fend off financial risks, Reuters reported, citing the State Council’s Financial Stability and Development Committee.
“The new guidance issued from the regulatory agencies – they’re taking it more seriously, they want more enforcement,” Bobby Lee, Founder and CEO of crypto storage provider Ballet, told Bloomberg. “But in terms of the rules, it’s the same in terms of what’s allowed and not allowed. There’s talk about going after miners. The question is, can they catch all the miners.”
However, per Matt Maley, Chief Market Strategist for Miller Tabak + Co, it’s not really the mining issue that is the problem.
“They say they’re doing this as part of an effort to control risk taking in their markets, but it’s really a signal that China is not going to be a big market for cryptos unless it’s a PBOC-controlled one,” he told Bloomberg.
True
— nic "bankful" carter (@nic__carter) May 21, 2021
https://twitter.com/QwQiao/status/1395810483781918726?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1395810483781918726%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcryptonews.com%2Fnews%2Faltcoins-again-take-the-strongest-hit-amid-china-crackdown-n-10420.htm
Basically China is opting out of the crypto game, short sighted and so desperately
Authoritarianism is always opposite of freedom, and the faster it’s out of the the equation the better
I’m so bullish for what we are heading into, seriously
— Dovey "Rug the fiat" Wan (hiring) (@DoveyWan) May 21, 2021
https://twitter.com/thomasheller_/status/1395751509279744005?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1395751509279744005%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcryptonews.com%2Fnews%2Faltcoins-again-take-the-strongest-hit-amid-china-crackdown-n-10420.htm
Means Chinese investors are exiting the market, selling tether into RMB to avoid collateral damages (ie if further action against p2p OTC and banking relationship)
This happen the faster the better, as when they exit tether means sell pressure is deployed already
— Dovey "Rug the fiat" Wan (hiring) (@DoveyWan) May 21, 2021
what haven't China banned? github, google, signal, whatapp, facebook, twitter. do people dump those company stocks "oh noes china banned <social media they don't contro>" plus it's fake they've "banned" various things about #bitcoin a dozen times each and it keeps going in china!
— Adam Back (@adam3us) May 21, 2021
https://twitter.com/gladstein/status/1395833464755159046?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1395833464755159046%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcryptonews.com%2Fnews%2Faltcoins-again-take-the-strongest-hit-amid-china-crackdown-n-10420.htm
https://twitter.com/basedkarbon/status/1395835055549947906?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1395835055549947906%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcryptonews.com%2Fnews%2Faltcoins-again-take-the-strongest-hit-amid-china-crackdown-n-10420.htm
Bitcoin is still King. Most other large cryptocurrencies went down almost twice as much as BTC after the China mining news. Even the Proof of Stake ones, which of course makes no sense. To me it’s a sign markets overreact as usual and should recover soon. pic.twitter.com/nZjzPwAqDz
— Marc van der Chijs (@marcvanderchijs) May 21, 2021
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