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Crypto traders lost $1 billion due to Chinese bans


June, 21 2021
watermark Economic news

The central bank of China has called on financial institutions to fight harder against cryptocurrency trading. The People's Bank of China urged banks to immediately close payment gateways for clients trading in cryptocurrencies. In addition to this, the country's third largest bank has also imposed restrictions on clients whose activity is related to cryptocurrencies.


The digital currency market immediately reacted to this news with a strong fall, by more than 6%, and the capitalization of the entire crypto market dropped to $1.46 trillion. The bitcoin rate fell to $31,828. In the daily interval, traders lost about $1 billion.


The largest liquidation was recorded in the bitcoin market, and traders spent ~$618 million.The Ether (ETH) market records liquidations for ~$267 million, and XRP – for $43 million.


Moreover, the hashrate of the Bitcoin network also showed a drop. For example, today the cryptocurrency hash rate has dropped to 91 Exaches/sec. The last time the network recorded such values ​​back in November 2020. However, experts note that the reduction in the hash rate may be due to the relocation of miners from China: in mid-May, China announced a fight against cryptocurrency miners under the pretext of protecting the financial system and reducing carbon emissions.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.