Crypto live: Markets in free fall as $546 billion disappears amid short selling spree

Crypto live: Markets in free fall as $546 billion disappears amid short selling spree

By Benson Toti - min read
Updated 21 March 2023
Digital currency markets
The crypto markets are taking a hammering copyright (CC-BY 4.0)

CRYPTOCURRENCY markets are hemorrhaging funds at never seen before rates after China imposed a ban on foreign trading.

The Chinese government put the boot into its citizens from investing on foreign exchanges after imposing an internal ban on its own markets.

Now total market capitalisation has dropped to $280 billion from highs of $826 billion on January  7 2018.

Bitcoin is leading the way with the drop while at the same time charging ahead with its dominance of the market raking in a 36.9% share – up two percent on last week.

The markets are reacting to Governments around the world taking a firm stance on anonymous and global trading and exchange platforms.

And as more ICOs get set to enter the market to join the 1514 currently trading on 8569 exchanges – there’s trouble ahead for investors.

China’s Financial News, a publication affiliated to the People’s Bank of China (PBOC), reported that they have their eyes on preventing crypto investors from using overseas platforms to trade.

The report states: “ICOs and virtual currency trading did not completely withdraw from China following the official ban … after the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions.

“Overseas transactions and regulatory evasion have resumed … risks are still there, fueled by illegal issuance, and even fraud and pyramid selling.”

Meanwhile India has come out fighting declaring that cryptocurrencies are not “legal tender” signalling more threats to the free market which had been bullish in December.

India’s Economic Affairs Secretary, S.C. Garg declared the Government led by Neandra Modi would step in to make it “illegal” to use crypto as a payment system.

He said: “The government will take steps to make it illegal as a payment system.”

That prompted head of the Blockchain and Cryptocurrency Committee (BACC) of Internet and Mobile Association of India (IAMAI) Ajeet Khurana to say that he thought there was logic behind the Government’s decision making.

He said: “I recognized that it was a step in the right direction.
“Having the finance minister say that cryptocurrency isn’t legal tender is perfectly logical – every nation barring Japan has taken this stance.

“It doesn’t mean crypto trading is illegal, but comes with its own risks like any other investment asset in the market.”