In the wake of China’s decision to cement its ban by preventing consumer access to offshore exchanges, cryptocurrency markets have reacted with a sound retreat – with Bitcoin’s price tumbling to sit just north of the $6K USD mark.
The news cements a new multi-month low for Bitcoin, after a difficult January saw Bitcoin’s market cap face a $133 billion USD loss.
The development marks a reversal from the momentum that propelled Bitcoin to new all-time highs above the $20k USD mark in early December of 2017.
Bitcoin hasn’t lacked for company during this tumultuous spree, with Ethereum’s price similarly sliding by some 11%, while Bitcoin Cash retreated by as much as 17%.
Other cryptocurrencies, such as NEO, fell by 16%.
China yesterday made the official move to prohibit access to offshore cryptocurrency exchanges within its borders – barring such websites behind what is termed the ‘Great Firewall‘.
Offshore cryptocurrency exchanges and certain ICO websites have found themselves on the (proverbial) ‘other side’ of the wall, as regulators in China have expressed dissatisfaction with present measures in place that regulate trade on domestic websites in their continuing bid to counter ‘financial risks’.
The South China Morning Post, which is affiliated with the People’s Bank of China, offered that “…to prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs”.
Traditional markets in freefall
Interestingly, the cryptocurrency market’s retreat is concurrent to a freefall noticed in traditional markets – at the time of writing, the Dow Jones Industrial Average has fallen by more than 1,100 points, while the S&P 500 Index further collapsed by 5.1%.
CNBC reports that the downturn does not seem to have been caused by any single isolated concern; writing “The first thing to know about the stock market’s eye-watering slide Monday is that it wasn’t caused by anything fundamental.”
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