Crypto traders lost $1 billion due to Chinese bans

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.