Why Chinese Cryptocurrency Stocks Fell Hard Again Today
Popular cryptocurrency Bitcoin (CRYPTO: BTC) continued its slide on Tuesday as a consequence of China's crypto crackdown. Around 10 a.m. EDT, the price of Bitcoin had fallen below $30,000, according to CoinDesk -- its lowest price per coin since January. Naturally, funds that directly hold bitcoins like Grayscale Bitcoin Trust (OTC: GBTC) had also fallen this morning. Grayscale Bitcoin Trust was down as much as 13% earlier in the session.
Some investors practice a strategy involving charts and patterns called technical analysis. While technical analysis tends to be more short-term oriented rather than the long-term investing mentality my colleagues and I advocate for at The Motley Fool, it's worth noting that these traders believed support for Bitcoin would be tested around $30,000. Apparently it indeed found support there. Since dipping just below the $30,000 level, the price of Bitcoin and consequently Grayscale Bitcoin Trust has surged. As of 12:30 p.m. EDT, both have bounced back about 10% from today's lows.
Since much of the current uncertainty with Bitcoin involves China, it's not surprising to see the sell-off continue for Chinese cryptocurrency stocks. As of this writing, SOS Limited (NYSE: SOS) stock was down 4%, Canaan (NASDAQ: CAN) was down 4%, Ebang International Holdings (NASDAQ: EBON) was down 9%, and BIT Mining Limited (NYSE: BTCM) was down 9% as well.
Source Fool.com
