Cryptocurrencies went into recovery mode over the weekend and recouped most of their losses after China designated all crypto-related businesses as illegal.
Bitcoin rebounded to nearly $44,000 at the time of writing on Monday, while ether jumped by as much as 5% to above $3,000 per coin. Both coins have nearly recouped all of Friday’s losses, when the People’s Bank of China imposed a blanket ban on all crypto transactions.
“As the fear, uncertainty and doubt around the cryptocurrency ban in China is slowly leaving the market, there is a sense of stability across the crypto spectrum. With bitcoin surpassing the $44,000 mark, most of the other top cryptocurrencies followed suit. The coming 24 hours could be a period of stability across the crypto spectrum,” explained Mudrex CEO Edul Patel to the Economic Times.
On Friday, the PBOC strengthened its strong opposition against virtual currencies, and banned any and all crypto-related activity, even going as far as prohibiting foreign crypto exchanges from conducting business with China’s domestic investors. The latest ruling comes amid the country’s broader crackdown on cryptocurrencies; earlier this year, Beijing forbid crypto mining across popular mining hubs such as Inner Mongolia, Sichuan, and Xinjiang, in an alleged effort to curtail energy consumption.
Information for this briefing was found via the Economic Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
