The bitcoin It fell more than 8% on Friday after China’s Central Bank said it would crack down on cryptocurrency trading, banning foreign exchanges from serving mainland Chinese investors.
At 11:36 GMT, the largest cryptocurrency was trading down 8.05%, at $ 41,289 and cryptocurrencies that tend to trade in parallel with the bitcoin they also went down. The ether it was sinking more than 11%, while XRP was down 10%.
The People’s Bank of China It also said that it will prohibit financial institutions, payment companies and internet companies from facilitating cryptocurrency trading, and that it will strengthen oversight of the risks of such activities.
Cryptocurrency markets are in an extremely fragile state overall, and these types of dips speak for it; there’s a degree of panic in the air, “said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities.
“Cryptocurrencies continue to exist in a gray area of legality across the board in China,” he explained.
Shares of companies related to cryptocurrency and blockchains also came under pressure, such as data mining firms listed in the United States. Riot Blockchain, Digital Marathon and Bit Digital, the Chinese SOS or the cryptocurrency exchange Coinbase Global.
Earlier this year, Chinese authorities said they were going to crack down on cryptocurrency mining, prompting a sell-off of bitcoins and other currencies.