The cryptocurrency markets were hit by yet another massacre yesterday, this time triggered by China. Bitcoin fell by $4,000 in a matter of minutes, but it has already made a partial recovery. Most altcoins have lost much more, and some have yet to recover, such as ETH, which is still trading at less than $3000.
Leading encryption performance over the past few days has been stellar. It rebounded from a price drop to below $40,000 and gained several thousand dollars in value.
Yesterday’s retest of $45,000, which is now multi-day highs, was the icing on the cake. However, at this point, when the bulls were preparing for another price hike, the news from China was chasing the crypto space. As a result, prices fall instantly. Bitcoin dropped more than $4,000 in less than an hour.
The bulls climbed and began to raise their leg after it reached a low of about $40,600. BTC recovered around $3,000 in the hours that followed, briefly topping $43,000. However, the asset lost some ground recently and is now valued at around $42,500.
During yesterday’s massacre, altcoins suffered more than their leader. Ethereum fell from a high of $3,100 to $2,750 in one day. Although some ground has since been regained, the second largest cryptocurrency is still well below the $3000 price target.
Bitcoin and Ethereum price to enter the consolidation phase
Mike Novogratz, CEO of hedge fund Galaxy Digital and former Goldman Sachs asset manager, claimed in a recent tweet that he believes Bitcoin and Ethereum Price will merge now that they (and the entire crypto market) have been affected by news so far. Ban another Chinese cryptocurrency.
The Central Bank of China (PBOC) published papers on Friday declaring that all cryptocurrency transactions in the country are illegal. On the other hand, cryptocurrency ownership is still allowed.
Then some crypto-influencers confirmed that the documents had been circulating within the People’s Bank of China and the Chinese government for about two weeks but had just been announced on September 24.
