China Puts One Dead Eye On Cryptocurrencies


On January 16, bitcoin lost over 26% of its value, having passed the mark of $11 thousand. Bitcoin has lost 50% against its maximum indicators of December 2017. Other crypto currencies also took a deep dive: Ethereum fell 16%, BTC Cash dwindled 20%, Ripple – 24%. The total capitalization of the cryptocurrency market decreased from $709 bn to $577 bn.

According to CoinMarketCap, main cryptocurrencies lost 19% of the capitalization from $709 bn to $577 bn over Tuesday.

The most popular cryptocurrency, bitcoin, fell 26.7% having reached the low of $ 10,194 thousand. After the opening of trade, bitcoin lost $ 3.715 thousand.

Thus, from the high on December 17, 2017, when the price of one bitcoin reached $ 20.09 thousand, the rate of the cryptocurrency dwindled by half. As for now it is priced $8300 per 1 btc.

At the same time, by the close of trading, bitcoin managed to repel some of the lost positions having reached $ 11,383 thousand.

Other crypto currencies also experienced problems. The second by the global market capitalization Ethereum fell 16%, Bitcoin Cash lost 20% of the cost, and Ripple collapsed 24%.

Experts say the bitcoin fall may be due to the desire of China authorities to block internal access to centralized platforms where the currency is traded. A well-informed source told Bloomberg that both individuals and companies providing services for creating a market and calculating for centralized trade should get under state control.

Also, China’s central bank instructed the National Internet Finance Association (NIFA) to demand that the Chinese regional authorities begin to regulate the volumes of mining in order to save electricity.

In September 2017, The Wall Street Journal reported that the Chinese authorities “are moving along the path of full restriction of trade in bitcoins.”

However, the prominent economist Jeffrey Sachs in his column for the Boston Globe said that the rise in the price of bitcoin “is difficult to consider as anything other than a bubble that will burst sooner or later.” The cost of BTC is supported solely by the people’s belief in it and the desire to quickly enrich themselves, Sachs said.

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