China Continues Its Crypto Crackdown – Bitcoin Still Under Pressure
The Chinese cryptocurrency crackdown continues in 2021, as regulators supervised by the People’s Bank of China and the China Insurance and Banking Committee issued a statement in which they’ve targeted the speculative nature of cryptocurrencies. They’ve also advised financial institutions and payment companies to not participate in any crypto-related transactions or provide such services to their customers.
As the country had started testing the Digital Yuan in several different regions, Bitcoin and other altcoins are now viewed as a threat by the Chinese regime and there is no evidence suggesting the pressure on the cryptocurrency market might ease.
Most of the large exchanges and crypto-related companies have moved their headquarters outside of China a few years ago already, but the most important aspect recently has been the deteriorating Bitcoin sentiment. It led to a +50% price correction and doubts over whether the market bull run can continue to extend higher in the months ahead.
Bitcoin struggling to recover
In light of increased regulatory pressure from China and other major countries, the Bitcoin price was hit by a strong wave of selling, dropping from close to $65,000 all the way to $30,000, erasing almost all the gains for the year.
Although the selloff looks to be contained for the time being, with the price hovering close to $40,000, Bitcoin buyers continue to show hesitation, as the recovery has yet to pick up momentum. Same as in 2018, the fear of regulation seems to be creating uncertainty and in such an environment, market participants need to embrace a completely different approach when wanting to get involved in the cryptocurrency market.
Cryptocurrency trading – a more viable approach?
All the regulatory hurdles are creating issues for individuals and companies holding physical crypto and using traditional cryptocurrency exchange platforms. That’s not the case when it comes to brands like CF Global Trader, which specialize in cryptocurrency trading.
This means people can take advantage of the volatility in the market by using derivatives based on cryptocurrencies, without ownership. Trading Bitcoin and other altcoins has become more viable during the past several weeks since the bull run seems to have taken a break and market participants need to look after opportunities when prices are falling.
A cryptocurrency trading platform like CF Global Trader covers hundreds of crypto-based trading instruments, including altcoins like Dogecoin, Stellar, Tron, EOS, IOTA, or Dash. Benefits such as low initial deposit, personal education, trading alerts, signals, and daily market updates are available with CF Global Trader and can incentivize Canadian residents to look for alternatives to traditional crypto exchange platforms.
The bottom line
Uncertainty in the cryptocurrency market has increased as China and the USA, and other Western countries are showing a willingness to regulate crypto once again. Faced with such prospects, retail traders should take a close look at trading platforms such as CF Global Trader, since it represents a solution to gain exposure to Bitcoin and other cryptocurrencies, using an infrastructure compliant with regulation and some of the highest trading standards.
