The crypto market crash grew worse with the latest attempted crackdown in China. Trader’s sentiment continues to be rattled and incur over $1.3 trillion losses since the last market peak on May 12 when the CEO of Tesla announced the company will no longer accept Bitcoin payments.
Various cryptocurrency exchange centers in China have halted mining in response to the Chinese regulators and pressure from the Bejing crackdowns. Huobi, a cryptocurrency exchange, recently announced ceasing its mining and trading operations in mainland China. It is unknown how halting mining services will impact the industry since the crypto market temporarily crashed in April due to blackouts in the nation.
Huobi is one of the largest cryptocurrency exchange centers by volume, it is unclear how the market will be affected after the company also halted investment products from foreign countries. The company justified ceasing trade services, stating that protecting the interest of investors is a top priority in light of the recent market dynamics.
Cryptocurrency has been constantly changing dynamics out of speculations, noted Lule Demmissie, the president of Ally Invest. He elaborated on the matter stating cryptocurrency has been a liability of changing market dynamics with peak-performing assets plunging due to inflation concerns.
Cathie Wood, the CEO of Ark Investment, believes that Bitcoin prices will rise to $50,000 despite the market crash. Wood insisted volatility is a key characteristic of the crypto market and should be expected.
The promise of cryptocurrency has been rattled before due to regulatory concerns. The crypto market crashed in 2017 despite growing more than 10-fold. Within months, more than 80% of the world’s cryptocurrencies crashed due to crackdowns on booming coin offerings and minted tokens. Experts believe the market will recuperate its losses, while others believe it will plunge in light of recent dynamics.
