Despite China’s blanket ban on cryptocurrency trading activities, the big players are still thriving in the cryptocurrency field. On the 11th of October, Bitcoin’s trading over $56,000, which marks an increase of over 3% from the day before.
In an attempt to tighten its crackdown on crypto trading, The People’s Bank of China announced by the end of September that every cryptocurrency-related transaction was deemed illegal. Foreign exchanges were also prohibited from providing their services to China’s users.
And the reason?
According to the central bank, since cryptocurrencies are not fiat currency and therefore cannot be circulated in the market, this would disrupt the nation’s “economic and financial order”. Moreover, the bank claimed that allowing cryptocurrency trading activities would encourage illegal fundraising, pyramid schemes, fraud, and the like.
“China has banned crypto more times than one can count,” commented the head of Luno in Singapore, Vijay Ayyar.
China’s Ban: A New Wave in Cryptocurrency Trends
Whatever the view of both users and non-users may be, the effects of this ban on crypto mining are unmistakable.
Crypto investors’ apprehension following China’s ban on crypto trading and mining has impacted the market. As such, the price of cryptocurrencies like Bitcoin and Ethereum took a hit when this announcement was made. Bitcoin suffered a 5.5% decrease. Other players like Solana (SOL), Cardano (ADA), and Algorand (ALGO) followed suit in this price drop.
The Comeback Kid: How the Cryptocurrency Blanket Ban in China Hasn’t Killed Bitcoin
But that isn’t the end of the crypto market. Today, currencies like Bitcoin, Solana, and Algorand are marking a spike in their prices.
Last Wednesday, Bitcoin topped $55,000 and hit its highest level since the middle of May 2021. And it doesn’t disappoint today. Over the 24 hours, Bitcoin has made a leap of 0.03% while in the past week, its prices went up by approximately 19%.
“We expect short-term overbought conditions to be weathered long enough for a test of minor resistance near $52.9K, a breakout above which would target the all-time high,” said Katie Stockton, the founder, and managing partner of FairLead Strategies.
SEC chair Gary Gensler and Treasury Secretary Janet Yellen have spoken out and made assurances. They don’t plan on restricting cryptocurrency trading. And this, in turn, has eased regulatory fears. This is probably one of the big reasons why crypto prices have bounced back.
Michael Sonnenshein, the CEO of Grayscale Investments, had this to say about Bitcoin’s ups and downs: “The Bitcoin price has moved around quite a lot even recently, and so when we see dips in prices, we often see that as an opportunity and investors moving in to buy those dips.”
“BTC may escalate further on the basis of market exuberance and trading momentum, begetting more buying,” commented Siddharth Menon, COO of WazirX. “Being one of the biggest influencers on BTC, the strengthening of Dollar Index compared to the last two days may impair the overall Crypto markets.”
China’s Crypto Ban Hasn’t Stopped Other Players in the Field from Thriving
Ether went up over 1% at around $3,600. Polkadot and Dogecoin prices, on the other hand, don’t show the same increase. CoinGecko reported a surge in Shiba Inu prices which went up 3.5% over the past 24 hours, while Stellar prices increased by 10.8%.
Solana has shown some promise in recent days, too.
“Solana is actually my highest holding right now,” said Bill Baruch, president of Blue Line Capital. “Got in that at a good time and that has risen pretty sharply. I think that has legs to go as well from here.”
Crypto Today, Crypto Tomorrow, Crypto in the Possible Long-Term Future
It seems that the pressure exerted by China following its ban on crypto transactions hasn’t lasted too long.
Delano Saporu, the founder of New Street Advisors, has identified a rising trend. More and more institutions are looking into crypto. The Bank of America reported that Wall Street has been garnering a lot of enthusiasm surrounding crypto. The bank is also pouring in some effort into researching Bitcoin. The US Bank has moreover offered institutional custody services.
Watching this increase in momentum, it’s safe to say that the world of crypto still thrives.
“I think it’s an opportunity for investors to really do some more due diligence and see if it makes sense for them as well,” said Saporu.