The cryptocurrency market is in a pickle at present. A huge tsunami of bearish correction has hit the major altcoins with full force. The resulting destruction has taken out big chunks of value from the market cap. The market bulls who were excited about the recovery of Bitcoin back to $40K after a tough period are once again at the bottom.
On Monday, red candles lit up across the top 100 altcoins after bad news from China hit the media. The Public Bank of China (PBOC) has issued new guidelines for the banking units to block and seize crypto accounts. The news has not been made official yet. However, the recent implementation of a blanket ban in major provinces like Xinxiang, Sichuan, Inner Mongolia, and others has made crypto proponents anticipate the news for quite some time.
A 5% piece of the whole crypto market cap has broken off from the impact of the tsunami. In one week, Bitcoin has moved away from the moon and towards the bottom, losing 4 percent of its market cap in the process. At press time, the flagship cryptocurrency is trading for $32,260, which is about 50% lesser in comparison to the $64,500 ATH in April. Meanwhile, silver cryptocurrency seems to share a similar fate.
Ethereum breached $20K for the first time in April as well and registered a new ATH in May with $4,356. After the bad tidings from China were made public on Monday, it also takes a step back. At press time, Ethereum is trading for $1,932.5, which is higher than a 50% decline from its recent ATH. On the whole, a whiplashing amount of $1 billion was reduced from the overall crypto market cap.
Chinese Government is Sacrificing the DeFi Market on the Full Moon to Promote the CBDC Digital Yuan
The government of China has been busy promoting the arrival of the digital Yuan with great vigor and dedication. The mining operators who were prospering in China due to the low cost of electricity and cheap real estate are now packing up and fleeing the place. Meanwhile, it has been reported that PBOC would soon be rendering services to retail and commercial crypto trader accounts in the region.
In 2014, a similar policy was imposed by the central regulatory authorities in China. However, since then, Bitcoin prices have managed to grow many folds. While imposing restrictions in the marketplace for cryptocurrencies, China is also paving the way for widespread adoption of the digital Yuan. The local authorities have already installed more than 3000 CBDC ATMs in Beijing.