Why The Crypto Market Is Down – After ordering the shutdown of Bitcoin mining in Sichuan Province, China has made all crypto currency transactions illegal, causing crypto market prices to plummet.
In the previous hours, the cryptocurrency market has dropped 11.43 percent (5.30pm, Friday 21 January 2022).
Crypto currencies are experiencing a volatile period with unpredictable price movements after a year of increases and record highs.
Following China’s announcement of new limitations, investors began selling mining equipment, causing Bitcoin and other top crypto currencies plummet in value.
• Bitcoin (BTC) -10.47% (£28,340.17)
• Polygon (MATIC) -13.35% (£1.38)
• Ethereum (ETH) -13.42% (£2,058.91)
• Tether (USDT) +0.61% (£0.74)
• Binance Coin (BNB) -8.04% (£316.28)
• Cardano (ADA) -13.31% (£0.89)
• Solana (SOL) -10.20% (£93.84)
• XRP (XRP) -8.12% (£0.51)
• SHIBA INU (SHIB) -11.54% (£0.00001840)
• Terra (LUNA) -6.99% (£57.33)
• Polkadot (DOT) -12.72% (£16.20)
• Dogecoin (DOGE) -8.05% (£0.11)
• Avalanche (AVAX) -14.83% (£54.36)
It comes in the wake of recent market crashes sparked by Tesla’s decision to cease accepting Bitcoin as payment for its products, as well as China’s crackdown on ICOs, block exchanges, and cautions against speculative trading.
China has ordered Bitcoin mining in its Sichuan province to be completely shut down, as well as asking banks to stop enabling crypto transactions, in the latest wave of crypto restrictions.
After declaring all cryptocurrency transactions illegal, China’s central bank, the People’s Bank of China, has effectively banned digital coinage.
The decision has already had an impact on the global bitcoin market.
Why Is The Crypto Market Down?
China’s crypto crackdown comes only days after Musk’s shocking declaration.
As a result of Musk’s decision, Tesla, which only started accepting Bitcoin as payment for its services in February 2021, has made a dramatic U-turn.
It came after Tesla bought $1.5 billion (£1.06 billion) worth of Bitcoin stock, driving the cryptocurrencies and Tesla’s stock prices soaring.
Due to the environmental impact of the laborious process of minting new digital currency, Tesla has removed Bitcoin mining as a customer option.