The Chinese are cracking down on ICOs, and it’s putting a damper on the crypto market. More on that in a moment.
This isn’t the first big red day we’ve seen in the crypto space.
In fact, we had another one, not too long, and also on a Monday. That was June 26 and I wrote about it here. That Monday in June we saw the overall crypto market cap go from over $105 billion to under $95 billion in a single day.
We’re seeing much of the same thing this time around. The entire crypto top 10 is in the red. Check out the coinmarketcap snapshot below.
This time the move is actually steeper, as we dropped from $165 billion to under $140 billion on Monday alone.
Overall, peak to trough, $180 billion on September 1 to under $140 billion on September 4, we dropped 22.2%.
Will we drop more? Quite possibly. From the June 26 low we went on to lost another 33%. Should that happen now the overall market would fall to roughly a $94 billion market cap. That means Bitcoin might be around $2,700.
So what’s going on?
It seems the People’s Bank of China (PBoC) has banned all of China from ICOs.
The PBoC went on to say that raised funds should be refund. I’m not sure how that’s going to work.
Not helping matters is the fact that the SEC recently issued a warning about ICOs.
With the regulators clamping down I think we’ll see more projects moving to crypto friendly areas like Switzerland. It will be interesting to see what happens to the overall ICO space. This might slow things down for a while.
I plan to keep hodling. And if we see a pullback like we did in July, I’ll be a buyer.
For more articles on cryptocurrencies follow me @g-dubs.
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