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China fuels declines on Bitcoin once again

Summary:

  • Chinese watchdog orders the national digital exchanges to close
  • Russian Finance Minister sees no reasons for prohibiting cryptocurrencies
  • Bitcoin (BTCUSD on xStation5) may test an important support area shortly

It seemed that the end of the last week would be calm however, the Chinese watchdog weighed in once again which saw a hefty sell-off across all major virtual currencies. A report claimed that Chinese regulators ordered the nation’s digital exchanges to close. That was the second blow to the $150 billion cryptocurrencies market after the PBoC declared initial coin offerings (ICOs) illegal.

The above-mentioned document has been issued for local Chinese regulators to implement the shutdown, according to Caixin. Bitcoin slumped as much as 7.3% in the aftermath of the release. Moreover, a rout seen in the most famous virtual currency spread over to other cryptocurrencies.

link do file download linkLitecoin (LTCUSD) collapsed following the Chinese report on Friday. The price has stopped falling at around $63. If that level is broken, a move toward $50 could be on the cards. Source: xStation5

While China appears to be against broadening of usage of cryptocurrencies, Russia begs to differ. To be precise, Russian Finance Minister Anton Siluanov offered insight into the government’s plans to oversee Russia’s domestic cryptocurrency market during an appearance at the Moscow Financial Forum last Friday. According to him, there’s no point in banning cryptocurrencies. He also ensured that the ministry would likely treat digital money similarly to securities.

link do file download linkBitcoin is hovering slightly above a local support zone in the vicinity of $4066. Once that level is broken, an extended decline even towards $3510 could be likely to occur. Source: xStation5

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