Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Cryptocurrency Stocks Slump as China Extends Its Crackdown

Published 24/09/2021, 12:08
Updated 24/09/2021, 12:08
© Reuters.

© Reuters.

(Bloomberg) -- Cryptocurrency stocks declined after China extended its crackdown to digital currencies, with its central bank saying all crypto-related transactions are illegal.

Argo Blockchain PLC (LON:ARB) slumped 10% in London, while Bitcoin miner Northern Data AG lost 2% in Frankfurt. In U.S. premarket trading, MicroStrategy Incorporated (NASDAQ:MSTR), the enterprise software company that has more than $5 billion of crypto assets, lost 3.5%. Riot Blockchain (NASDAQ:RIOT) Inc. and Bit Digital Inc. each fell about 5%.

The comments by the People’s Bank of China sent cryptocurrencies tumbling, with Bitcoin falling below $44,000. Markets have been on edge as China has tightened its grip on sectors ranging from private education to digital gaming. The debt crisis at property developer China Evergrande Group has added to the tension.

In U.S. premarket trading, MicroStrategy Inc ., the enterprise software company that has more than $5 billion of crypto assets, lost 5%. Coinbase (NASDAQ:COIN) Global Inc., the cryptocurrency exchange, fell 3%. Marathon Digital Holdings Inc. slumped 6.2%, while Ebang International Holdings Inc., Riot Blockchain Inc. and Bit Digital Inc. each fell more than 4%.

“China authorities are forcing the available liquidity into the real economy,” said Xiadong Bao, an emerging-markets fund manager at Edmond de Rothschild Asset Management. While the move may not be direct fallout from Evergrande, the overall goal of China’s regulatory efforts is “less speculation, for example in property and crypto, and more sustainable development,” Bao said.

Latest comments

diversion from evergrande
Everyone lump on polkadot
Assholes, get with the times
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.