A drop of more than 10% in the capitalization of cryptocurrencies accounted for billions of dollars in just 40 hours
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Friday, November 8
Cryptocurrencies and exchanges fall after China banned them from its financial institutions
The last hours have been of great losses for the cryptocurrencies . Almost all the most capitalized tokens are in the red since yesterday, among other things, after China announced the ban on money virtual in their financial institutions.
It is spoken of a crash since the 10% until the 14% in various cryptocurrencies. For example, bitcoin almost lost 10% of its value in just 24 hours, but ethereum and dogecoin lost up to 14% of its market value.
Ethereum, yesterday fell even below $ 2, dollars , then during the day it was recovering value; in the same way it happened with the bitcoin that fell below $ 40, 000 Y the doge below $ 0. 40 pennies . Today they are still fighting to recover.
From Beijing, a new regulation was announced according to which financial institutions cannot provide savings, trust or pledge services or issue any product financial linked to virtual money. Cryptocurrency exchanges and initial offerings are also prohibited.
However, private holding of cryptocurrencies is not prohibited.
Consequences
This massive collapse with the fall of most cryptocurrencies has caused the most important exchange platforms to crash as well , due to the number of users in traffic because they fell into a panic due to the crash.
Platforms like platforms Coinbase and Binance were announced on each other’s respective websites or Twitter accounts.
Coinbase noted to be experiencing intermittent inactivity and some delays in withdrawing from ethereum and ERC – 20 due to network congestion. And they conveyed security to their clients saying that their funds were kept “safe and secure.”
For its part, Binance.US tweeted a similar message announcing that the withdrawal of ETH and the ERC – 18 was experiencing delays due to congestion and they apologized for any inconvenience.
$ ETH and ERC 20 withdrawals are temporarily disabled due to network congestion.
Thank you for your patience and apologies for any inconvenience caused. pic.twitter.com/BbECDgDUay
– Binance (@binance) May 19, 2021
Also, other exchange platforms or exchange were affected by the collapse in the network and many users reported the system down , it happened with Kraken, Gemini, Coindesk .
But this is not new news, already It is known that when there are pronounced falls or rises in one or more cryptocurrencies the network collapses to verify, make transactions, be it purchase or sale, but they do it all at the same time.
Fearing loss, newbies want to sell and experts take advantage Those panic sales and buy . And then when the panic is reduced, therefore the same thing happens with the traffic on the servers, and everything returns to normal.
But it was probably not only China that made the market collapse, it has been showing radical and strange behavior for a few weeks, or rather attached to the volatility attributed to virtual currencies. Weeks ago he did the same bitcoins and it crashed.
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