After China sent a signal to crack down on cryptocurrencies, the prices of cryptocurrencies such as bitcoin plummeted.
On Wednesday (May 19), the price of cryptocurrency fell sharply due to the fear that China's regulatory authorities would step up the crackdown, and the transaction was very chaotic. By the time of the Financial Times report, bitcoin's price had plummeted by US $12000. After the fall, the price was slightly higher than US $30000, down nearly 30%. Ethereum fell about 40%. Other cryptocurrencies also fell sharply. More than $8bn of positions have been forced to close in the past 24 hours, according to monitoring data.
In addition to the large fluctuations in currency prices, users of two well-known cryptocurrency exchanges, coin an and coinbase, have encountered technical problems when trying to sell their cryptocurrency holdings.
According to the report, the latest signs show that global regulators are starting to examine this booming market more closely.
On the evening of the 18th, the China Internet Finance Association, the China Banking Association and the China payment and clearing Association jointly announced that virtual currency "is not real currency" and "should not and cannot be used as market currency". The statement also called the recent surge in the price of cryptocurrency "speculation"《 The Financial Times said that stance has exacerbated bearish sentiment on cryptocurrencies.
According to the report, while the price of cryptocurrency plummeted, the share price of coinbase, a bitcoin exchange, fell 12%, and that of MicroStrategy, a software company transformed into a bitcoin investor, fell 15%.