CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Bitcoin price rebounds from China ban

By Aaron Woolner

04:28, 27 September 2021

Bitcoin versus China
Bitcoin versus China - Photo: Shutterstock

Bitcoin rose in Asia trading to around $44,400 as cryptocurrency markets looked to shrug off Friday's news of China’s digital currency ban which drove BTC as low as $41,000.

Ethereum also rose in early trading to about $3,180 after it dipped below the $2,800 mark for a brief period in a general sell-off across the digital currency markets after the Chinese central bank issued a statement banning cryptocurrency use.

The People’s Bank of China’s statement also said it was illegal for overseas digital exchanges to offer services in China. 

Cardano down 5%

Trading in the other top 10 coins by market capitalisation was mixed on Monday with Cardano down 5% at $2.23 while meme token Dogecoin also lost just over 1%, whereas Binance Coin and XRP both gained about 5%. 

Bitcoin and ETC may have rebounded by markets in Hong Kong had a harsher verdict on the impact of Beijing’s latest crackdown, with cryptocurrency exchange Huobi Technology seeing its shares fall by over 24% by midday trading.  

Despite the latest bout of volatility, Deutsche Bank’s cryptocurrency analysts see a bright future for cryptocurrency, describing it as potentially, “21st century digital gold”.

What is your sentiment on ETH/USD?

3331.45
Bullish
or
Bearish
Vote to see Traders sentiment!

ADA/USD

0.79 Price
-2.770% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00646

DOGE/USD

0.38 Price
+2.100% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

BTC/USD

97,120.60 Price
+2.910% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

XRP/USD

1.12 Price
+0.570% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

"21st century digital gold"

In a video on the bank’s website Marion Laboure, analyst at Deutsche Bank research’s arm, says that while BTC’s price will remain volatile in the near future, so too did the historical gold price. 

Laboure outlined three key reasons why she expected bitcoin to remain a significant factor in the financial sector. 

“First, about two-thirds of Bitcoins are used for investments and speculation. Second, due to its limited tradability, just a few additional large purchases or market exits can significantly impact the supply-demand equilibrium.

Small investors impact price

Third, Bitcoin’s value will continue to rise and fall depending on what people believe it is worth. Small changes in investors’ overall perceptions about Bitcoin can have a large impact on its price”.

 

Read more: Huobi Tech tumbles after its crypto trading platform bars new users in China

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading