The Impact of ICO Ban In China On Bitcoin Price

It’s been a few weeks since China imposed a ban on the Initial Coin Offerings (ICOs) within its territories. While experts say this ban is only temporary, it has already started to show its effect on the popular cryptocurrencies. As it turns out, the Chinese government is also expected to ban the trading of cryptocurrencies on its domestic exchanges pretty soon.

This also means that the three largest Bitcoin exchanges in China namely Huobi, Yunbi and OKCoin will stop offering their trading facilities to the locals. Huobi and OKCoin however, will continue to operate overseas while the remaining local exchanges will be shut down completely. Both the exchanges are currently operational in China but will cease their services to the locals by the end of October, following the suit.

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Impact of ICO Ban On Bitcoin

Following the ICO ban, there was a sharp decline in the Bitcoin price. The BTC value went below $3000 on some exchanges. This continued for several days but then the price rebounded pretty quickly and made up for all the losses in a matter of weeks. At the time of writing, the Bitcoin price is hovering around $4600 on major exchanges.

Not only Bitcoin, but the price of other Cryptocurrencies were also affected. The second most popular cryptocurrency, Ether also experienced a slight drop in price which was less than 10%. Within a week, the ETH price was restored and is currently trading at around $300. However, the biggest plunge in the price value is experienced by Bitcoin Cash which went below $400 from its original value of $560. Call it the aftermath of ICO ban in China or whatever, but the price of Bitcoin Cash continues to fall. The BCH is currently trading at $315.   

What Fears The Most?

It’s only a matter of time if China is going to revoke the ICO ban or not. But one thing is for certain. China is no longer a dominant Bitcoin trader as it used to be. Owing to so many bans imposed by the Chinese government, the global trading share of China has dropped from 90% to just 10%. Ironically for China, more than half of the Bitcoin Miners are located in the country. China also manufactures a large quantity of Cryptocurrency mining equipments and exports them throughout the world. But following a series of bans on the exchange and regulation of Cryptocurrencies, China has left far behind and the emerging markets like Japan, Korea and United States are now flourishing in the Crypto space.