The last few days have been unpleasant for cryptocurrency holders especially the past 24 hours. Majority of cryptocurrencies have reduced significantly, totaling over $10 billion. In addition, the market capitalization has recorded the second largest drop of 5% in less than month.
Currently, all the top 30 cryptocurrencies by market capitalization have seen a pullback, with BTC, ETH and XRP recording a 4-5% downtrend. Since yesterday, other cryptocurrencies have also recorded further drops in prices. LTC, EOS, BCH and BSV have recorded 5.2%, 7.5%, 8.2% and 9.2% respectively.
This major decline seems to have a relation with recent statement made by Chinese President, Xi Jinping, that his earlier comments about cryptocurrencies were misinterpreted. Jinping believes cryptocurrencies are unregistered securities that encourage fraud and Ponzi schemes, hence he doesn’t support them.
It appears the president only believes in the blockchain technology but not public cryptocurrencies. However, China is planning to launch its own digital currency later next year.
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