Global Cryptocurrency Market Crash: Ethereum Price Drop and Stabilization
Right from the start we need to say that this is a stressful time for digital coin traders. The global cryptocurrency market is known for being unpredictable but that term just got a new meaning during these couple of days. Bitcoin hit the impressive milestone of $5,000 but that was all overshadowed when China decided to officially ban ICOs. China’s ban is considered as the main reason why the market crashed which caused Bitcoin and Ethereum’s value to take a nosedive.
Ethereum Price Drop and Stabilization
Bitcoin is the most popular digital currency and Ethereum sits on the second spot. Furthermore, Ethereum’s price reached a three-week low of $270. This caused many traders to start cashing out their coins which led to panic all throughout the cryptocurrency community. Although, we need to mention that things are actually looking better now since Ethereum’s price stabilized at $305. Moreover, statistically speaking, Ethereum is still up 3,000 percent on the year.
China Bans ICOs
As previously mentioned, China is the getting all the blame when it comes to the market crash. China considers that ICOs are not a good practice since they are not supervised or regulated by any higher authority and it decided to simply ban them. Things get even more complicated since China also announced that all companies involved in ICOs should start sending refunds to their investors.
Now that we’ve got that out of the way, the question which remains is what other world superpowers want to start banning ICOs? Sadly, we don’t have an answer to that question since no one knows what’s going to happen. What we can be sure about though, is that if America also decides to ban ICOs, the market will certainly crash again. Although, there’s nothing to hint towards another ban so digital coin traders don’t have anything to stress about, at least for a short period of time.