No one takes China’s cryptocurrency ban seriously anymore. In less than 10 years, the country has a history of five bans. It doesn’t look like its September 24 decision was the final because there are some platforms that enable transactions with little or no restrictions.
Unlike 2013 when bitcoin experienced a massive tumble after authorities announced. BTC had fallen from $1,100 on November 30 to $559 on December 18, 2013.
There was a similar ban in 2017, 2019, and in May 2021. Since 2013, a year never passed by without a form of restriction from authorities within the Asian country.
But the latest announcement saw up to 10 authorities including the Central Bank of the Republic of China and securities and foreign exchange speaking with one voice.
Effect on price of cryptos:
On Thursday, September 23, 2021, before the China announcement, bitcoin, the leader of the crypto, was trading above $43,000 and dropped to $40K, leading to other cryptos reacting to a similar shock.
The price of BTC determines how other coins react, they took a backward move, but it isn’t a big shock to worry about compared to the May 2022 crypto crash that made a Redditor drop an investment motivation for those who are ‘victims’ of recent crash.
Five days after, bitcoin is gaining momentum as it’s trading $42,230, showing 0.24% gain in the last 24 hours while ethereum (ETH) set its eye on $3,000K, trading at $2,927.99, it gained 0.10% in the last 24 hours.
Other cryptocurrencies have have also showed sign of recovery include:
- Binance Coin (BNB), it gained 8.69% in the last 24 hours, trading at $370.76
- Tether (USDT)
- Chainlink (LINK), it gained 0.12%, trading at $23.60
- Cardano (ADA)
- Solana (SOL)
- Bitcoin Cash (BCH), it gained 1.23%, trading at $491.65
- USD Coin (USDC)
- Polkadot (DOT)
- Dogecoin (DOGE)
- Binance USD (BUSD)
- Uniswap (UNI)
- Litecoin (LTC), it gained 0.28%, trading at $147.68
BTC which drives the price of other cyptocurrencies was on on its way to recovery at the time of publication.