China is the new fear factor in the global cryptocurrency market, as the Chinese government’s recent regulatory decision cost bitcoin investors $21.35 billion – but prospective digital owners love it.
The Asian country released a QandA statement on Friday, criminalising the whole cryptocurrency market; the miners, the exchanges, and the buyers.
This singular order knocked down the bitcoin market value from $825.70 billion of Thursday to $804.35 billion early Saturday, Ripples Nigeria gathered from crypto reference website, Coindesk.
The crypto market had taken a breather from Tesla boss, Elon Musk’s ‘negative’ rhetoric regarding the virtual currencies since Q2 of this year, as his Tweets on Twitter usually influences the market.
Musk’s Tweet was behind the bubble burst of bitcoin in May, when his decision to pull out his support for the digital asset crashed the most popular cryptocurrency from the milestone of about $60,000 per bitcoin to below $30,000.
China, the new Musk crypto latecomers needs
With bitcoin and other cryptocurrencies trying to regain their May loss in the past three months, China’s decision has been an albatross around the neck of exchanges and traders.
In June, China had halted the operation of crypto miners, with the restriction affecting about 90 percent of them – majority of global crypto miners are in the Asian country.
Fast forward to Friday, the Chinese government said, “virtual currency-related business activities are illegal financial activities.” adding, that cryptocurrencies, “are not legal and should not and cannot be used as currency in the market (of China).”
In response to the decision, the price of bitcoin dropped to $40,906 on Friday, against the $43,986 it sold for during official business hours on Thursday.
The fall in the crypto market price opens the virtual currency community’s gate for latecomers to take position in the market as the price bubble from Q4 2020 to Q2 2021 had made the entry barrier too high for prospective investors.
So while the loss affects the holders of the unregulated-digital currency, it serves as a pointer to latecomers queuing at the crypto community gate.
P.R expert and Journalist, Damilare Famuyiwa, said he’s willing to buy the dip, “but the bitcoin and Ethereum prices are too high, so I’m waiting for Musk to join the Chinese government to help bring down the cost.”
A Media Buying professional, Ukhueleigbe Zaccheus, told Ripples Nigeria, “It is better to buy cheap, and sell at a higher price.”
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