Crypto Market Meltdown

I woke up this morning and checked on my Coinbase account like normal to see what’s going on with my portfolio and that was a rough way to start the day to say the least. Cryptocurrencies have been on a down trend for the past week or two so I wasn’t expecting much but the massive drop that occurred this morning at 6am Pacific was an eyeopener. We all know the cryptocurrency market is notorious for being volatile and having big swings up and down, but this was a massive spike down where Bitcoin bottomed out at $30,000. Bitcoin hasn’t been that low since January of this year.

What’s causing the crypto market to meltdown? Multiple factors have led to the downturn in the crypto market but this morning there was news that China is banning all cryptocurrency related activities. The three organizations authorized by Chinese regulators to oversee their respective industry segments: the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China, released a joint statement that bank and payment institutions cannot conduct business related to cryptocurrencies, specifically banning activities including cryptocurrency registration, trading, clearing and settlement.

According to a Forbes article released today written by Jonathan Ponciano, “The value of the world’s cryptocurrencies dropped about $50 billion, or 2.5% immediately after the announcement, pushing the week’s staggering losses to roughly $500 billion from a Wednesday high above $2.5 trillion.” The statement was reiterating a 2017 ban on the same cryptocurrency related activities but the fact that China sounds serious now had a massive impact on the crypto markets.

The incredibly fast rise of cryptocurrency values was sure to lead to a market correction, which is what I think we were experiencing the past week but this news from China could be signs of worse things to come. According to that same Forbes article, US Securities and Exchange Commission Chair Gary Gensler has suggested that his agency may be gearing up for a crypto crackdown in light of the market’s recent volatility. This would be disastrous if the US were to implement any type of regulation on the crypto markets, prices and values would plummet.

What’s your thoughts on Wednesday’s big drop caused by the news from China? Do you think this is the end of cryptocurrencies or is this just a dip to buy and diamond-hand through? Leave me a comment and let me know your thoughts.

Photo by Executium on Unsplash

Author: vancealm

Working as a manager within two of the largest retail companies for the past 7 years has given me insight into consumer trends and essentially what people are buying on a normal basis. Why is that useful? Because it gives me a better understanding of the established and growing brands and companies that could potentially work to make YOU money. My name is Vance Alm and I am currently working on earning my MBA from the University of Nevada, Reno. I want to talk, teach, and find out more about investing in the stock market. Recently, there has been a lot of news around the stock market, hedge funds, and normal retail investors which has reignited the nation’s curiosity about investing their money. A lot of people want to be involved with the excitement of potentially making money by investing in the stock market, but they don’t know how or even where to begin. I want to explore the world of investment banking with you and talk about everything involved, from researching different companies to invest in, to the different online platforms or financial service companies you can use and everything in between. I am not a wealthy hedge fund manager and I am not an expert in the field, but I am passionate about the idea of having your money work for you. I am always learning more on the topic and I want to open the conversation on how to start investing and what companies to potentially invest in.

2 thoughts on “Crypto Market Meltdown”

  1. Wow!
    Good job Steve. Crypto, to me, is scary stuff unless your on it every moment to see the trending values.
    Who knows what we are in store for during these current times.
    Thanks for what you’re doing; it’s very enjoyable to read.
    Mike

    Liked by 1 person

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