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Altcoins Take The Strongest Hit Again Amid China Crackdown News

Altcoins Ban

Bitcoin China

Ethereum

Market

Last updated: June 26, 2023 06:54 EDT

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Linas Kmieliauskas

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Linas Kmieliauskas

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Last updated:

June 26, 2023 06:54 EDT

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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.

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