Cryptocurrencies in red. The People's Bank of China prohibits cryptocurrency

The cryptocurrency market is bathed in blood today. The vast majority of virtual coins lose their value, and the drops range from a dozen to ... several dozen percent. At its worst Bitcoin (BTC) was overpriced today -32%. Since the April peak, the declines have already measured over -50%. Can it be called a crash?

Cryptocurrency market in red

The morning began unusually calm, but a wave of sell-offs was unleashed around noon after the People's Bank of China announced a ban on the use of virtual assets for payments. Ethereum (ETH) was losing over -42%, Ripple (XRP) -45%and niche cryptocurrencies as recently reported SHIB INA (SHIB) even over -60%. What is the situation a few hours later after the day's low has been marked? In most cases, more than half of the losses have already been recovered. It must be admitted, however, that the Chinese central bank's communiqué is not a good long-term omen for the entire sector.

The reflection of the odds was helped by none other than Elon Mask, who showed in his tweet "Diamond hands", which can be interpreted as a signal that he (or Tesla) is not planning to get rid of virtual assets, even though they are depreciating in value.

Stock market problems or traders' problems?

Meanwhile Cryptocurrency exchanges have been recording huge problems for several hours. Users complain about the inability to make new deposit payments. Fund deposit transactions in Coinbase, Binance and other exchanges practically do not go through the implementation of several hours. This is the effect of a storm of customers who wanted to use the discount to increase their exposure to virtual currencies. The one who has not prepared for such a situation by keeping a reserve of funds in stablecoinsnow it can only watch the situation develop.

 BINANCE: Register from the link below i save -10% on commission.

XTB Suspends Cryptocurrency Trading

For the second time this month, X-Trade Brokers, one of the largest brokers in Europe, has suspended trading in cryptocurrency-based assets. Although you can only buy cryptocurrency CFDs at XTB, the problem with the lack of adequate liquidity in the market forced the broker to change trading conditions and switch to "Close only" (it is only possible to close open positions, without the option to open new orders). Previously, the suspension of trading only affected more niche cryptocurrencies. Now the changes have covered the entire list of instruments in this category. You will probably have to wait for the market to stabilize before unlocking the trade.