After the Chinese government reiterated its opposition to digital assets, the entire market capitalization of all cryptocurrencies in the industry decreased by over 5% today.
The Chinese government stated that “recently, virtual currency trading hype activities have increased, upsetting economic and financial order and fostering unlawful and criminal activities such as gambling, illicit fundraising, fraud, pyramid schemes, and money laundering.”
Despite the fact that this is not the first time China has criticized cryptocurrency, the great majority of coins saw their prices plummet, increasing current global market anxieties over the imminent collapse of China’s property behemoth Evergrande.
Bitcoin’s price has dropped by roughly 4.2 percent on the day as of this writing, with the cryptocurrency selling at around $42,392.
Other popular currencies including Ethereum (-7.7%, $2,899), Cardano (-1.1%, $2.22), Binance Coin (-7.4%, $351), Ripple’s XRP (-6.5%, $0.93), Solana (-7.3 %, $138), Polkadot (-3.5 % $30), and Dogecoin (-6.6 %, $0.2) are also losing ground.
Meanwhile, the “Bitcoin Fear and Greed Index,” a tool that measures the cryptocurrency community’s views based on volatility, market momentum, social media posts, and other factors, has remained in the “fear” zone in recent days, compared to generally “neutral” sentiments last week.