Another Shock for the Overall Crypto-Market, but things May Get Back to Normal
At present, there is a lot of uncertainty and confusion spread throughout the cryptocurrency sector. It is mainly because of the constant downtrends that the cryptocurrency industry is facing. Whenever the cryptocurrency industry starts picking up the pace, something terrible takes place, bringing the whole industry down.
It may come as a huge surprise to the entire crypto-sector, especially, the users that have recently joined the crypto-verse to witness such a trend with cryptocurrencies.
However, the cryptocurrency sector is used to such kinds of ups and downs. People that have been connected with the crypto-verse for some years would know very well what kind of situation the crypto-verse is facing.
Although most of the downtrends observed in the crypto-verse are related to general bulls turning bears, this time, the situation is different. From the beginning of December 2021, two major plunges have been observed with the cryptocurrency industry.
However, this time, it wasn’t the investors who triggered such a plunge but the regulators that made it happen. On Saturday, December 4, 2021, the entire cryptocurrency sector witnessed how the entire crypto-verse plunged in terms of prices and capitalization.
As it happened, the entire cryptocurrency sector was concerned and wanted to know what had led to this sudden downtrend. After some time, reports started coming in where it was revealed that it was due to the Chinese regulators that the crypto-verse would be heavily impacted.
To everyone’s surprise, the impact was already being felt across the board as the prices of almost all cryptocurrencies ended up plunging. This happened because the Chinese regulatory authorities decided to take down the entire crypto sector in the country.
As of now, the cryptocurrency sector is fully banned in the country alongside any operations related to cryptocurrencies. The Chinese regulators had launched their attack on the crypto-verse back in 2017, and since then, the situation had been building up, leading to this point.
Back in 2017, the Chinese regulatory authorities had banned cryptocurrencies in the country. However, the regulatory authorities never enforced the regulations. Therefore, the crypto-sector continued growing in the country until the regulators went aggressive around the bans in May of 2021.
That was the first time when the overall cryptocurrency sector experienced a huge downtrend. The overall valuation of the crypto-verse plunged from $2.4 trillion to $1.5 trillion. It took the crypto-verse almost 4 months to recover from the plunge, until the regulators went at it again on December 4, 2021.
However, this time, the regulators have gone all out banning the entire cryptocurrency sector. At present, it is being predicted that the crypto-verse may not be able to recover from the downtrend. But, the crypto-verse has proven its potential from time to time, and this time again, it will prove its might.