The cryptocurrency market values have been facing major volatility since the crypto crackdown announced by China. Analysts predict that major cryptocurrencies such as Bitcoin, Ethereum, and other cryptos will continue to fall as the crackdown in China worsens.
In May, the bitcoin market value crashed and lost 50% of its total value. Since then, it has not had a minute of relaxation with constant pressure from the worsening crackdowns. At the same time, Ether, which is a cryptocurrency derived from the blockchain Ethereum, is also facing a crisis. It is the second-largest cryptocurrency in the world and has fallen over more than half its original price. It is currently struggling to maintain its position of $2,000 per token.
Analysts warn that crypto prices could be in danger as many of the mining firms in China won’t return as they have been decommissioned. Bitcoin and Ethereum miners in China have been dumping GPUs at a very fast rate. This can also prove to be dangerous for the future of crypto prices.
China went on a serious cryptocurrency crackdown earlier this year. This caused a sudden downfall in the crypto prices which cost investors millions of dollars. Moreover, China has taken the initiative on blocking the services of cryptocurrency exchanges. This information was buzzing around on social media websites. It was confirmed when some users from China reported that they had to use VPN services to access Huobi and Binance.
Following China’s lead, countries all over the world are taking the regulatory aspects into consideration. Currently, Binance, the world’s largest bitcoin and cryptocurrency exchange, is under global scrutiny over its regulatory measures. Countries such as U.S. and others in Europe have been focusing on the security measures of Binance.
It all comes back to China’s crackdown on Bitcoin and other cryptos. People using computers of high powers to secure their bitcoin wallets and mine cryptocurrencies had to send their transactions outside of China. The crackdown was imposed due to the large volumes of electricity that were taken up by bitcoin miners.
Since May, Ether has fallen down 20% of its value. It failed to gain back its original value after it dropped past $30,000 in May.