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We knew a substantial correction was coming, but we didn’t know when it would hit. After China’s decision to outlaw Initial Coin Offerings, Bitcoin price corrected to its lowest total since August 22 today — touching $4100 level.
Virtually every cryptocurrency in the world is tanking right now. Exactly how long the recovery will take remains to be seen. At the time of writing, Bitcoin has just started to recover trading $4356 — very close to its support level of $4500 — reviving the cryptocurrency market cap to $151 billion.
Furthermore, People’s Bank of China’s notice stated that “persons or organizations who have completed ICOs shall refund the investors, protect the investors’ rights, and deal with the risks properly.”
Now that China has taken the first step to ban ICOs, other countries will be looking into the same and come up with their stance on token sales. Expect country after country coming up with regulations on ICOs in the weeks to come.
Once the investors realise these bans have nothing to do with Bitcoin, we will not see a crash of this magnitude on a similar news coming from another country in the future.
Top Stories from the Crypto World
1. Russia’s Central Bank issues warning on cryptocurrencies and ICOs
The Bank of Russia has published a notice issuing the risks of cryptocurrencies and initial coin offerings. It said, at this stage, the bank won’t greenlight any cryptocurrency trading on any official exchanges, nor would it approve the use of the tech for infrastructure purposes.
Interestingly, the Bank of Russia doesn’t serve as a financial regulator in Russia; that role falls to the State Duma and the Ministry of Finance.
A good thing to know: Yesterday, Russia’s communications minister Nikolay Nikiforov asked Russia to create its own alternative to Bitcoin and Ethereum because they are “developed on foreign cryptography,”
2. Robert Shiller calls Bitcoin a bubble
Yale economics professor Robert Shiller won the Nobel prize for his work on bubbles. He has done deep analysis on bubbles like tulips, stocks, and houses.
When asked what are the best examples now of irrational exuberance or speculative bubbles? Shiller replied saying, “The best example right now is Bitcoin. And I think that has to do with the motivating quality of the Bitcoin story.”
3. Coinbase celebrates 10 million users
One month after becoming the first crypto “unicorn,” U.S. Bitcoin exchange Coinbase has reached 10 million registered users. The startup saw tremendous growth in 2017, adding thousands of users per day and handling increasing levels of trading volume.
In the last three weeks of August alone, the exchange added an astonishing 800,000 users as the price of Bitcoin rose to $5000.