China's situation and cryptocurrencies price
We will take a look at the charts to see how one regulation in China can influence the whole cryptomarket.
How bitcoin influence other coins
Once in a while there is a significant crash on the market. Sometimes it it caused naturally and is directly connected to the bubble that has to finally burst, but sometimes there is a significant news and real situation behind it.
You might have noticed that Bitcoin has dropped from $4300 to $2990 within few days.
Even though it happened quite smoothly and even on the charts you can see that it wasn't the usual sudden spike, it is still a big thing for the whole cryptocurrency market in general. As all the other coins and tokens are directly connected with the bitcoin. When it is going up, the altcoin market is raising twice as fast, however when bitcoin is in some kind of crisis, other coins are dropping twice as bad.
Let's look at the Ethereum chart.
You can also see some popular coins examples below. Notice how they all go down at the same time, it shows there there is no cryptocurrency where you can securely hide and wait until the issues are solved.
The main thing that has caused this is the fact that China has introduced some non-official rules for cryptocurrency exchanges that in the end forces few big exchanges to close. Some people consider China to get off the cryptocurrency ride with such decision. It's quite weird as Chinese investors are relatively big players on the market and influence the price everyday with their trades.
Below you can find the allegedly imposed rules translated from Chinese:
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