The cryptocurrency market did not change the downtrend with the beginning of the new week. Ethereum’s own cryptocurrency (ETH) continued its struggle for the $ 2,000 level and in the process dropped to $ 1,976, the lowest level since May 23. The decrease for the last week is 20%.
Bitcoin also updated local minimums today. At 09:10 Moscow time, its price went down sharply and in half an hour dropped by 6.6% or $ 2,285 to $ 32,450. Altcoins also continue to fall, many of which have lost more than 10% of their value over the past 24 hours. Cryptocurrency market capitalization in a few days decreased from $ 1.75 trillion to $ 1.37 trillion. In May, the figure exceeded $ 2.5 trillion.
The Agricultural Bank of China, one of the country’s four largest financial institutions, today issued a notice that it will not support cryptocurrency-related transactions. Clients who would be caught in such activities were threatened with closing their accounts, and they promised to transfer information about them “in a timely manner” to the responsible authorities.
While it is almost impossible to accurately assess the impact of a specific notice on the market, China has recently become a major source of negative news around cryptocurrencies again, after already significantly restricting transactions with them in 2017. Recently, the Chinese authorities have resumed activity in this direction, paving the way for the launch of their own digital currency.
“This notice differs from what they announced in 2014 in at least three ways,” said Chinese journalist Colin Wu. – First, it clearly shows the requirements of the central bank. Second, it requires an investigation of past activity. Thirdly, it is necessary to notify the state about the revealed facts ”.
Barry Silbert, CEO of Digital Currency Group, which also owns the world’s largest digital asset manager Grayscale Investments, urged investors to prepare for a “dangerous” week. A week ago, when answering a question about what share of cryptocurrencies in the market, in his opinion, is overvalued, Silbert called the value 99%. At the same time, the head of DCG announced that he had taken a long position on the volatility index of the Chicago Options Exchange VIX, preparing for another period of uncertainty in macroeconomics.
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