The crypto markets had another carnage yesterday, this time triggered by China. Bitcoin plummeted by $4,000 in a matter of minutes but has already made a partial recovery. Most altcoins have lost significantly more, and some have yet to recover, like ETH, which is still trading below $3,000.
The flagship crypto’s performance over the last few days has been excellent. It had rebounded from a price reduction below $40,000 and gained several thousand dollars in value.
Yesterday’s retest of $45,000, which became a multi-day high, was the culmination of this. However, at this point, when the bulls were gearing up for another price rise, news from China went after the crypto space. As a result, prices plummet very instantly. Bitcoin plummeted by more than $4,000 in less than one hour.
The bulls stepped up and initiated a leg higher after it hit a low of approximately $40,600. BTC recovered about $3,000 in the hours that followed, briefly exceeding $43,000. However, the asset has lost some ground recently and is now valued at around $42,500.
During yesterday’s massacre, alternative coins suffered even more than their leader. Ethereum dropped from a high of $3,100 to a low of $2,750 in a single day. Despite regaining some ground since then, the second-largest cryptocurrency remains far below the targeted $3,000 price level.
BTC & ETH Price to Enter consolidation phase
Mike Novogratz, the CEO of Galaxy Digital crypto hedge fund and a former Goldman Sachs asset manager, claimed in a recent tweet that he believes Bitcoin and Ethereum Price will consolidate now that they (and the entire crypto market) have been hammered by news of yet another Chinese cryptocurrency ban.
The Chinese Central Bank (PBOC) published paperwork on Friday declaring all cryptocurrency transactions in the country unlawful. Cryptocurrency ownership, on the other hand, is still allowed.
Some crypto influencers then confirmed that the documents had been in circulation within the PBOC and the Chinese government for roughly two weeks but were just made public on September 24.