The Chinese government’s attitude against Bitcoin mining is no secret to anybody. Back in May, Chinese officials reaffirmed an old ban that forbids financial firms from actively aiding in the mining and selling of cryptocurrencies. Although it created a sizable dip for the market, crypto investors still believe that China’s action will not have a substantial negative effect in the long run, as the ban was in place since 2013, but hardly anything had been done about it since.
Having said that, on Monday, the Chinese authorities took drastic actions against Bitcoin mining across the nation. This move sent a clear message that the Chinese government will enforce the crypto ban much more seriously. As the world’s largest crypto mining power that accounts for over 65% of the total computing power of Bitcoin mining, the ban surely created significant turbulence across the market. Bitcoin’s sell-off created a widespread domino effect on almost all cryptocurrencies. As most altcoins are built off the Ethereum blockchain, it’s no surprise that Ethereum has crumbled with it as well.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.