Markets buy back another Chinese attack on cryptocurrencies

The main antihero of the crypto market of late has once again been China. The country’s authorities are fiercely trying to eradicate everything related to cryptocurrencies, mining, and trading.

The most negative effect was a report that illegal activities include providing cryptocurrency trading services to citizens of mainland China. Residents of the Middle Kingdom used the services of exchanges and other crypto platforms that had jurisdiction outside of mainland China, but now the provision of such services could be sanctioned by the Chinese regulator.

China’s National Development and Reform Commission now counts the suppression of mining activity by local authorities as a plus in performance metrics. The document is dated September 24th and draws a line under any development and investment in the sector in the country.

In addition, the People’s Bank of China added fuel to the fire by publishing an announcement that cryptocurrency-related activities are illegal.

News occasions are particularly active in the crypto market, as their impact here is much greater than in traditional finance. As always, there are a lot of people who want to buy at a discount as the price goes down.

The new week will likely bring the crypto market to the upside. Bitcoin is up over 5% on Monday morning, and this price will soon offset the latest round of correction. Ethereum, the leading altcoin, is even showing a growth of 10% overnight, almost offsetting the recent decline. Other leading altcoins are also in the green zone, and if we do not face new negative news factors, the crypto market will soon cross the $2 trillion capitalization level again and head even higher.

The FxPro Analyst Team