Cryptocurrency price news – China’s crypto ban sparks slide in
CHINA’S crackdown on cryptocurrencies has seen Bitcoin and Ether plunge in price after the country ruled all transactions in the digital assets were illegal.
Bitcoin’s price dipped about five per cent to $42,496.12, according to Coin Metrics data. Ether, the second-largest digital currency, dropped seven per cent to $2,921.53.
But Senator Pat Toomey hailed the decision of China’s central bank to declare cryptocurrency transactions illegal as a “huge opportunity” for the US.
In a tweet the GOP lawmaker wrote that the decision was also a reminder of America’s “structural advantage over China”.
“Beijing is so hostile to economic freedom they cannot even tolerate their people participating in what is arguably the most exciting innovation in finance in decades,” he added.
It comes after China said that mining for cryptocurrency tokens is banned.
The People’s Bank of China (PBOC) added: “Virtual currency-related business activities are illegal financial activities.”
The country previously banned financial institutions from offering crypto related transactions, and warned investors against speculative trading in them.
Read our cryptocurrency live blog for the latest news and updates…
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WHAT IS ALGORAND?
Algorand is a cryptocurrency of the Algorand blockchain, a public decentralized network on which smart contracts can be built.
It was created in 2019 by Silvio Micali, a professor a the prestigious Massachusetts Institute of Technology (MIT).
The computer scientist has also won the Turing Award for his work in the area of cryptography.
The Algorand Foundation based in Singapore is behind the project.
Algorand claims that it speeds up transactions and improves efficiency compared to bitcoin and other blockchains.
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SHARES IN CRYPTO FIRMS ALSO FALL
Shares of cryptocurrency-related firms Coinbase Global , MicroStrategy Inc, Riot Blockchain and Marathon Patent Group fell after China’s central bank put a ban on crypto trading and mining.
“It’s been a very volatile week to say the least, so I think going into the last week of September the volatility is likely to continue especially with the end-of-the-quarter window dressing,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Investors are also looking for signs of progress on President Joe Biden’s spending and budget bills.
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THE ‘MUSK’ EFFECT ON CRYPTO
Elon Musk has once again been linked to activity in the crypto markets.
Earlier this week, the Telsa CEO tweeted about the arrival of his new Shiba Inu pup, Floki.
Just days later, the price of Shiba Inu coin was skyrocketing.
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WHERE DOES COINBASE REVENUE COME FROM?
The majority of Coinbase’s revenues come from Bitcoin and Ether on the Ethereum blockchain.
They are currently the number one and number two cryptocurrencies on the market, according to MarketWatch.
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