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Panic in the market! Bitcoin recovers after ICO ban in China

Panic in the market! Bitcoin recovers after ICO ban in China

Recently, China’s central bank decided to classify bitcoin ICO as an ambitious way to raise funds. The government has instructed to completely stop the work of crypto-currency exchanges. As a result, the market reacted immediately with a decrease in almost all digital currencies.

Bitcoin recovers after ICO ban in China

In the resolution of the bank it is said that the exchange of crypto-currencies is prohibited, which can be regarded indirectly as a ban on the activity of crypto-currency exchanges.

Persecution in China led to a drop in the price of Bitcoin by 20% from $ 5 thousand to $ 4 thousand, already three days after the ban, since China is one of the largest markets of Bitcoin.

The largest Chinese stock exchanges in China reported the strongest decline in prices since July. Bitcoin fell from a high of $ 4,900, which was reached a few days ago, to a mark of $ 4,200. The decrease was 21%. The price for Bitcoin has since recovered and is $ 4,600.

Analysts predict that this recovery is short-lived.

The marketing manager of bitFlyer USA Jon Holmquist told, “While it may appear to be negative news, I think that Bitcoin has expanded far beyond a single country at this point. I think that ultimately a single country’s decisions for or against Bitcoin won’t ultimately affect the price in the long term.”

Two of the largest platforms for buying crypto-currencies in China – ICOage and ICO.info, which helped to connect companies that sell tokens with customers in China, have already stopped providing services and accepting new projects.

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This year, the popularity of ICO in China and the world has skyrocketed. ICO have become the primary means of raising funds for projects built on Blockchain technology. Companies create and issue digital tokens that can be used to pay for goods and services on their platform or saved as investments. This year, ICO raised more than $ 1 billion around the world. In China, ICO collected at least 2.62 billion yuan (about $ 400 million), according to Reuters.

This was not the first announcement of China regulators against Bitcoin and under crypto-currencies. In February 2017 major Chinese digital currencies stopped Bitcoin and litecoin withdrawals. These were the parts of the Chinese central bank requirements introduced to combat anti-money laundering.

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