Brief: This weekend, cryptocurrencies experiencing a major price drop down. Since the loss resulted in 20% net loss for overall cryptocurrency values.
Over the weekend, Bitcoin was at a $5000 peak. Almost, bitcoin associated with all digital coin that experiencing dropdown in values.
Significantly, Bitcoin price has downward graph over $1000 as China abandon cryptocurrency.
According to Wall Street Journal reports, authorities of China decides to ban Bitcoin trading on domestic exchanges. However, over the weekend, pushed Bitcoin as low as $3978.
Since, beginning of September, there is a 20% drop when Central Bank of China banned on ICOs. Preceding, Bitcoin has been up surging as investors grew positively about transactions and upcoming cost.
Additionally, China’s investors keep using Bitcoin to secure themselves while the yuan fall in value. Even though, Yuan trading in Bitcoin that can allow them to migrate funds outside the country. Usually, $5000 annual limit has set by the government of China. Since it is how much citizens can move outside of the country as it was a way to evade the rules.
Moreover, still, the ban is not exactly implemented on trading Bitcoin. But, it is still allowed on the counter transactions. Meanwhile, present users are more likely to trade.
According to Zhou Shouji, a partner at FBG Capital,
“it will make it more difficult for new users to start trading Bitcoin—thereby limiting Bitcoin’s potential growth”.
However, Breakdowns of Bitcoin price history have always been a follow up by price drops. As today’s value of Bitcoin is $6687.01. Therefore, it seems to be recovering in just a few months.