China Crackdown FUD Spikes Crypto Markets To Bounce

The China crackdown FUD spiked some excessive market movements while the mainstream media is still strongly behind the premise that the latest movement was a response to the crackdown in the mainland but Bitcoin suggests otherwise. Let’s find out more in the coming altcoin news today.

After the series of warnings from the Chinese government, a lot of the local exchanges shut down all operations according to the SCMP and the central bank and financial watchdogs have increased their anti-crypto rhetoric following the big FOMO when the Chinese president Xi Jinping endorsed blockchain. The report noted that the Chinese social media platform Weibo suspended all of the accounts operated by the major industry players such as TRON and Binance. The report noted that the latest wave of restrictions shows the large China crackdown of the sector since 2017 when the country ordered an end of open trading.

The fiat on-ramps have been closed but the people found other ways around the regime to go over the obstructions and turned to over the counter trading to get their crypto trading right. The report noted that these options are also slowly getting closed down in Beijing. A lot other smaller exchanges including Idax, Biss and Akdex have closed down or stooped serving the Chinese nationals as the head of research at Los Angeles Katie Talati from the crypto asset management at Arca commented:

 “It appears that, like everything else within their borders, China feels it needs to have tighter controls on the crypto market including exchanges, miners and asset issuers. I do believe, however, they are moving in a similar direction as Japan and other jurisdictions that have tight and clear regulations for crypto businesses.”

Everyone that is concerned about the China crackdown within the borders of the exchange are already moving their assets to other locations. The crypto-asset markets are increasing however and they renew their hope, bouncing off the bottom. The total market cap is back over $200 billion and Bitcoin is leading the charge with a 5% gain on the day.

During the Thanksgiving rally, the market seems to be rebounding and there are some green signs on the board today as the altcoins recover from their six-month lows. The China crackdown caused the initial pullback but it seems that the market wants to get out of the bottom. China wants its own cryptocurrency for increased mass surveillance purposes which makes it unlikely to allow other decentralized ones soon.