CryptoCurrency Prices Slide, Then Rebound
If you have been following the cryptocurrency markets this week, you may have been worried when prices slid across the board after China announced a new stance on ICOs.
On September 4th, several government entities in China announced their plan to ban ICOs and classify ICO offerings as an “illegal act” of fundraising. This, in part, triggered a $15+ Billion sell off in the greater cryptucrrency markets.
Bitcoin was among the cryptocurrencies affected, and slid close to $4,000 USD, nearly breaking through this important threshold. However, prices held strong and never broke below $4,000 USD, hitting a low of $4,068 USD. At the time of this post, prices began to rebound, shooting back up over 10% from their low to $4,400 USD.
Among the cryptocurrencies most significantly affected by China’s announcement were those in the Asian markets, including the popular cryptocurrency NEO which fell about 50% off of its high of $52.12 USD earlier in the month.
It is unclear what the long-term effects of China’s recent announcement will mean for cryptocurrencies, and more specifically ICOs. With that said, they are one of the largest sources of fiat currency in the cryptocurrency market, so it will likely have some type of negative effect – but to what extent, we don’t yet know.
*Disclaimer, I am still bullish on cryptucurrencies and own some, including BTC and NEO among others.