In the face of a ferocious regulatory assault in China, the most popular cryptocurrency has finally broken through the psychological barrier of $30,000.
The number one cryptocurrency, Ethereum, has plummeted below $30,000, just a day after falling below $2,000 in price. According to Nomics, bitcoin is currently trading hands for $29,678.
Though there are several explanations for the recent dip, renewed Chinese pressure is clearly one among them. Five of the country’s main banks, as well as payments platform Alipay, were instructed by the central bank to halt doing any crypto-related activity yesterday.
The injunction aims to prevent citizens from trading cryptocurrencies by preventing them from transferring funds to exchange platforms and over-the-counter (OTC) desks.
Bitcoin mining has also been banned in a number of Chinese provinces. So far, mining has been halted in Inner Mongolia, Xinjiang, Qinghai, Yunnan, and Sichuan. The bans appear to be part of a larger government message reminding citizens that bitcoin is still illegal in the country.
Market analysts have drawn a dismal picture as well. Crypto expert Alex Krüger stated that the market is “certainly [in] a bear market,” but added that “it could be worse.”
Another important measure that fits this picture is exchange inflows. When Bitcoin is first listed on an exchange, it is usually followed by a period of heavy selling. High outflows, on the other hand, imply that traders are transferring their cryptocurrency from exchanges to hardware wallets for long-term storage.
Ki Young Ju, the CEO of CryptoQuant, told us that the present action could be “more like a series of corrections that would last a few weeks,” rather than a bear market.
But, like with everything in crypto, this is only one signal in a sea of noise. Bears, for the time being, have dominated the conversation.