Bitcoin and Ethereum Fall as China Intensifies Crackdown on Cryptocurrencies

The Chinese government has again announced more bearish statements on cryptocurrencies, reiterating its ban on the use of “virtual currencies” since 2017.

The total market capitalization of all cryptocurrencies in the sector – important the combined price of all tokens in circulation – declined nearly 5% today after the Chinese government again made clear its negative stance towards digital assets.

“Recently, virtual currency trading advertising activities have increased, which has disturbed the economic and financial order, and led to illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes and money laundering, ” the Chinese government said.

Although this is not the first time China has condemned cryptocurrencies, the prices of the vast majority of them fell anyway, only exacerbating recent global market fears caused by a possible collapse of Chinese real estate giant Evergrande.

At the time of writing, Bitcoin’s price has fallen around 4.2% on the day, with the cryptocurrency trading around $42,392.

Other top tokens such as 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 falling .

Meanwhile, the “Bitcoin Fear and Greed Index,” a tool designed to measure the sentiments of the cryptocurrency community dependent on volatility, market momentum, social media posts, and other metrics, has remained in the “fear” zone over the past few days, compared to mostly “neutral” sentiments last week.

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