Gate.io’s Daily Market Trends（May 19）: Three Chinese Regulatory Institutions Crack Down on Crypto Business, Crypto Market Takes a Dive Along With Bitcoin Falling Below $40,000

2021-05-19, 06:13

On May 19th at EST,BTC price losed at $39,297.56, down by $6017.13 in 24 hours. The people’s Bank of China released a statement regarding the regulation of digital currencies at 22:00, causing the BTC price to plummet as far as $42,989.11 inside 30 minutes. Subsequently, BTC became extremely volatile. At 7:00, the BTC price -entered a downtrend reaching $38600 at 12:50 and hitting its lowest level since February 9. The MACD indicator has generally been moving below the 0 line since 20:00 on May 18th. The market sentiment that had just been appeased yesterday fell back into a panic today. Overall, today's BTC spot price is still dominated by the downward trend. Policy risk has been the fuse of this decline.

he National Internet Finance Association of China, the China Banking Association, and the Payment an,"Clearing Association of China, made a joint statement with the People’s Bank of China on the evening of May 18th. This statement specifically laid into the cryptocurrency market’s volatility, claiming digital tokens have "no real value", and they can not be used as an official currency in the market. All financial institutions should not offer crypto services to customers, including registration, trading, clearing, and settlement. After the statement, the value of cryptocurrencies, including Bitcoin and DogeCoin dropped significantly.

Several analysts from Wall Street made a prediction today that the selling momentum that Bitcoin has fallen into will intensify in the short term. They claim that the current Bitcoin price bound to drop even further to the 200-day MA, near $40,000. At a national level, different governments have different attitudes towards cryptocurrencies. Nebraska(U.S.) proposed a bill that would allow banks to provide cryptocurrency services. The Indian government will do deep research about the feasibility of cryptocurrency regulation. The global cryptocurrency lender giant, Block-fi, mistakenly distributed large amounts of Bitcoin to users as activity rewards and is now in the process of reversing these transactions.

Gate.io spot price (as of 22:00 Beijing time)

BTC: 39670.74 USD (-12.37%); ETH: 2964.55 USD (-14.90%); DOGE: 0.4072 USD (-18.65%); SHIB: 0.0000129 USD (-24.27%); GT: 5.85 USD (-24.15%); XRP: USD 1.43 (-6.96%); ADA USD 1.69 (-19.47%)

Author: Gate.io Researcher: Roxy.T, Charles.F & Gazer.C
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