China continues to oppress Bitcoin. What to expect?
China is a major player in the modern cryptocurrency market, on whose decisions the fate of the first cryptocurrency depends. More recently, on November 25, coin owners could observe a six-month price minimum on the Bitcoin (BTC) charts. What is the reason for the last price drop? Let’s get it right.
Discussion of the reasons for the fall of BTC
Cryptocurrencies, even taking into account the basic ideas about decentralization and anonymity, are very dependent on world politics. Each ban seriously hits the exchange rate of each coin. Bitcoin – is no exception. The Chinese government is actively seeking to subdue cryptocurrency, dictating its own terms and preventing traders from making a profit without taxes.
In addition to the measures already taken, the Chinese resource Weibo (an analogue of Facebook and Twitter) received an order from the highest authorities – to block the accounts of the large Binance exchange. Such a blow to the reputation of the most authoritative site for the exchange, sale and purchase of cryptocurrency instantly affected the price of Bitcoin. Around the same time, local police visited the Binance Shanghai office with another check. As a result of the raid, some documents were seized in order to further monitor the operation of the exchange. After a police visit, the Shanghai Binance office temporarily stopped its work. This is also negatively affected the price of the first cryptocurrency. However, not only the state apparatus works against the coin, but also private business. For example, Alibaba, a significant online resource, refused to integrate digital currency as a way to pay for purchases.
All this led to the fact that on the morning of November 25, bitcoin collapsed to the price of $6559.97 per coin. The total drop in value over the past week amounted to as much as 20%. Capitalization also decreased. The totality of all coins in the property decreased by 36 billion dollars. Now the capitalization is about 130 billion dollars.
From this we can make a small conclusion that the past week was extremely unfortunate for Bitcoin owners. All data is taken from https://www.coindesk.com/
What will happen to bitcoin?
Please note that by the end of December, the charts have leveled off. The market calmed down. That is why on November 29, the price of Bitcoin was $7,809. However, on December 3, 2019, the cost of the first cryptocurrency is at the level of $7282, that is, the coin fell in price again. It is not surprising that people need time to take action after such strong price shocks. Of course, now is not the best time to sell your savings in bitcoins. It is much more correct to buy coins and then sell them at a higher price. The growth of price tags is forecasted by leading experts who promise that the first cryptocurrency will cost $10,000 or more by the beginning of 2020.
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