Bitcoin Crashes, China Bans Everything Crypto and More To Start Your Weekend

China-bans-coins-bitcoin-against-background-chinese-flag, blockchain

Global cryptocurrency markets crashed today amid new regulatory reins in China. Almost all cryptocurrencies fell, with Bitcoin and Ethereum still experiencing some of the largest losses as of publish time. Here’s what’s been going on in the world of crypto:

1. China Declares Crypto Illegal

China’s central bank announced yesterday that all crypto-related transactions are now illegal. The country also declared all financial transactions involving cryptocurrencies against the law. China has been at odds with the freedom of crypto mining and trading, as it has been testing and developing its own digital currency, the electronic Chinese yuan, putting the U.S. in a tight spot as the race for a government-regulated digital currency heats up.

2. Mining Also Gets the Axe

In addition to financial transactions, China declared all Bitcoin mining illegal. Mining is the process by which massive computers continuously search for and produce “tokens” which can then be sold on the open market for cash or more digital currencies.

See: How These Major Cryptos Have Fared in 2021

3. Bitcoin Receives Another Massive Blow

The largest and most popular cryptocurrency, Bitcoin, took one of the steepest falls Thursday and continuing into Friday amid the China ban. Bitcoin had been hovering around $50,000 a couple of weeks ago, and as news broke, fell to almost $41,000. Although there was some recovery during the day, it currently stand at around $42,000, having almost 6% wiped off as a result of yesterday’s news.

Building Wealth

4. Ethereum Takes a Hit on Par With Bitcoin

Ethereum dropped about 8% to $2,800 per coin upon the Chinese central bank announcement. Ethereum — with a currency known as Ether — is second only to Bitcoin in market cap.

Discover: New Study Dubs California No. 1 Most ‘Crypto-Ready’ State

5. Crypto’s $188 Billion Market Value Wiped in Hours

The value of the world’s cryptocurrencies tanked to a new low of $1.8 trillion by this morning, falling almost 10% and wiping $188 billion in market value within just three hours of China’s announcement, reports Forbes.

Be sure to keep an eye out, as crypto numbers will continue to fluctuate over the weekend.

More From GOBankingRates

Last updated: September 24, 2021

Share this article:

Building Wealth

About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 
Learn More

Best Bank Accounts for September 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.