Bitcoin plunges to $30K, Cryptos tumble amid Chinese ban

ETH, Dogecoin, ETC and other Altcoins plunges up to 50%

Black Wednesday for Cryptocurrency market. All cryptocurrencies including Bitcoin, Dogecoin, ETH, Cardano, ETC are retreating sharply amid China’s new Cryptocurrency warning. Bitcoin plunged almost 30% to below $31000, wiped out more than $500 billion in value. Ethereum sank more than 40%, while Dogecoin lost 45% within few hours.

Multiple factors are at play, ranging from criticism of the Environment impact of Bitcoin’s energy usage by Tesla CEO Elon Musk, to the latest Chinese regulatory restrictions that have ban financial institutions and payment companies from providing services related to cryptocurrency.

What are the new Crypto Policy of China ?

Three financial industry associations on Tuesday directed their members, which include banks and online payment firms, not to offer clients any services involving cryptocurrency, such as currency exchanges, registration, trading, clearing and settlement.

The directives were made in the joint statement from the National Internet Finance Association of China, the China Banking Association and the Payment and clearing Association of China, and posted by People’s Bank of China (PBOC)

Additionally, institutions were prohibited from providing cryptocurrency saving, trust and pledging services and issuing financial products related to cryptocurrencies. Crypto related information services, insurance and derivatives trading are also banned.

Firms were also urged to step up monitoring of money flows involved in cryptocurrency trading.

What’s the impact of China’s new Crypto regulations :

China’s new Crypto regulations makes it more difficult for traders to buy and sell cryptocurrencies using various payment channels, and could impacts Miners’s business by making it harder for them to exchange cryptocurrencies for Yuan (China’s real currency).

After that breaking news , Bitcoin to all others Altcoins plunged up to 50% within few hours.

(With inputs ET)

Read : Tesla will no longer accept Bitcoin