Masses of investors buy Bitcoin during China crash

Masses of investors buy Bitcoin during China crash

China announced the long-awaited announcement of a complete ban on trading and mining cryptocurrencies. This resulted in an aggressive asset sell-off, which investors used as an opportunity to buy Bitcoin (BTC) in the dip. Thus, by September 24, 2021, investments in BTC had reached their highest level in four months. That’s at least what Monday’s (Sept. 27, 2021) CoinShares report claims. 

What’s happening in China?

Until now, China has been one of the largest cryptocurrency markets in the world, both in terms of the number of transactions and the number of cryptocurrency mines. However, the Chinese government is constantly trying to change that. In 2019, cryptocurrency trading was officially banned in the country, however, it still continued online using foreign currencies. In June 2021, China increased the pressure on the industry and banned cryptocurrency digging altogether. A few months later, in September 2021, China issued a final statement indicating that cryptocurrencies had become completely illegal there. In the statement, the Chinese government said that those involved in “illegal financial activities” were committing a crime and would be prosecuted. 

What are the implications of the Chinese market collapse?

According to a CoinShares report, Bitcoin (BTC) but also other cryptocurrencies have seen a sharp drop in price. In the case of the BTC token, the drop was 6%, to $42,000, while in the case of the ETH token it was as much as 8%. The price drop was accompanied by a sharp sell-off of assets, which represented an investment opportunity. And, as it turns out, this opportunity was exploited as much as possible.

Indeed, investments in Bitcoins reached their highest level in 4 months, with inflows equal to $50.2 million. Ether experienced inflows of $28.9 million, while Solana experienced inflows of $3.9 million. Thus, investors seized the opportunity and massively bought up assets that were “in the dip”.

It can also be expected that capital that has so far been held on centralized exchanges in China will be moved to decentralized portfolios. This trend can already be seen on the example of the dYdY exchange, whose 24-hour trading volume on September 27, 2021 increased by 163%.

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this article

More news

All articles loaded
No more articles to load

Learn

Cryptocurrency wallets

Cryptocurrency wallets

We talked about security when trading crypto assets in an article titled “Online security“. We also mentioned how important it…
hardware wallets

Cryptocurrency hardware wallets

From the article titled “Cryptocurrency wallets” you learned about the different types of wallets. They were briefly characterized there. Let’s…
Where to buy cryptocurrency brokers

Which cryptocurrency Brokers to use

In the article “Where to Buy Cryptocurrencies (Exchanges)“, we introduced you to which exchange platforms you can purchase cryptocurrencies on.…
Trading cryptocurrencies

Trading cryptocurrency

In the cryptocurrency market, you face many opportunities to invest in cryptocurrency or buy or sell cryptocurrency. If you want…
All articles loaded
No more articles to load

Analyses

All articles loaded
No more articles to load

Latest news

All articles loaded
No more articles to load