In the past few week there were plenty of news from China. First of all they banned ICOs, then crypto currency exchanges and now rumors are that mining is also prohibited. How is that affecting markets and what more we can expect from China?
TIMELINE
2017-09-04 China Bans ICOs and the market reacts drastically - Total Market Cap falls 15% or around $25B
2017-09-11 Anonymous sources start speculating about China banning all local exchanges and media starts reporting on it.
2017-09-14 Third largest chinese exchange - BTC China announces that it will suspend it's local services at the end of the month.
2019-09-15 Country’s two other major exchanges — Huobi and OKCoin — followed to say that they will cease at the end of October. Market falls again, this time even harder -35% or around of $53B of Total Market Cap
2019-09-17 New rumour starts spreading, that China is preparing to ban Bitcoin mining in general. There were few tweets on twitter from self-proclaimed mining operation owners standing behind their shut down mining rigs. Despite that well-known people in the industry has different opinion:
John McAfee - most known for creating McAfee antivirus software
Charlie Lee - creator of a Litecoin
CONCLUSION
It is hard to predict what will happen. Past couple of months for crypto-currency world were like a roller coaster. What we learned from ups and downs is that crypto-currency market manages to rebound after pretty heavy hits and it is here to stay. In my opinion safest bet would be to sell part of your crypto-currency holdings and wait for couple of weeks for market to calm down and to see if "China banning mining" was just a rumor or an insight.
