China’s crackdown on cryptocurrency escalated to a whole new level.
The news came yesterday that The People’s Bank of China had urged major banks and Alipay to crackdown on crypto trading. Six major banks, including The Agricultural Bank of China and China Construction Bank, and Alipay issued a statement prohibiting the use of the company’s services to conduct bitcoin and other virtual currency transactions and stated that it will not conduct or participate in any cryptocurrency-related business activities.
Hit by the news, Bitcoin fell as low as $31,169 on the Bexplus exchange. Other cryptocurrencies suffered severe losses too, with Ethereum dropping to $1,859.
According to reports, following Inner Mongolia, Qinghai and other regions, Sichuan is the next to crack down on crypto mining, requiring power companies to stop supplying crypto mining farms. According to the newspaper Global Times, more than 90% of China’s Bitcoin mining farms are expected to shut down as a result.
China’s crackdown has shaken the crypto market. Trading volumes fell by nearly half in May and June. Bitcoin’s hashrate has seen a steep decline, too. It seems that we are having a miner capitulation as many move to liquidate their Bitcoin holdings before the price of BTC drops further.
The bear market could be coming, how can you profit when prices drop?
Volatility is scary, but it’s another tool we can use to earn money with the right tools. With a bumpy road ahead, traders can engage in margin trading to hedge losses and potentially earn a profit.
Let’s see how we can benefit from a potential BTC price drop:
Assume we used 1 BTC to open a short contract when bitcoin was trading at $35,000. Please note that with 100x leverage, 1 BTC can open a contract worth 100 BTC.
If the price of bitcoin dropped to $33,000.The profit will be ($35,000 – $33,000) * 100 BTC/$33,000 *100% = 6.06 BTC. Of course, margin trading amplifies profits but could also amplify losses.
Margin trading is a mature derivative in the crypto market. Established in 2017 and headquartered in Hong Kong, Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on BTC, ETH, LTC, EOS, XRP, and more.
Bexplus requires no KYC, so you only need to open an account with an email address, which takes just one minute. Once your registration is complete, a trading account and a demo account with 10 BTC will be automatically created.
Practice Your Skills: A Demo Account
Successful traders are those who learn to analyze the market and can always think clearly. The best way to improve your skills and mindset is by practicing with the free demo account.
Every user is given 10 BTC at the beginning, and these are replenishable, so you can try out different strategies as much as you like.
Make a Deposit And Claim Bonuses
No deposit fees are charged. You can start depositing as little as 0.001 BTC. Bexplus supports Bitcoin, ETH, etc, as well as USD, EUR, AUD ,GBP and more than 50 currencies.
To help traders earn more, Bexplus offers a 100% deposit bonus to every trader. Deposit 1 BTC and you will get 2 BTC, with up to 10 BTC available for each deposit. The bonus is not withdrawable but can be used as margin.
Earn Passively With Bexplus
When you are not trading, you can transfer your BTC to the interest-bearing wallet and enjoy up to 21% annualized interest.
Sign up to get a 100% bonus and use a demo account to test your strategy.
Featured image via Pixabay.