The announcement of the crypto exchange Huobi was a new impetus for the fall of cryptocurrencies

On Sunday, crypto exchanges continued the sale of all major digital currencies, which fell in price over the past 24 hours by 20-30%, the Bitcoin rate fell by 15%, and the ether rate - by 17%. Bitcoin and Ether lost 50% of their value in April, according to CoinDesk.

The impetus for the fall, according to experts, was the announcement of the crypto exchange Huobi, the largest provider of services to investors in China, to suspend and curtail a number of its activities.

The Chinese authorities last week announced new restrictions on cryptocurrency transactions.

In the last auction, the price of Bitcoin was at $32 297, fall on 14.95%. Bitcoin hit a low of $31 179 (-16%) earlier in the afternoon. Ether, after falling to $1 733 (-17.8%), traded at $1 868. Later, the Bitcoin rate recovered to $33 533. Bitcoin lost $4 899 from the previous close, Ether - $391 compared to the previous close. On Friday afternoon, May 21, Bitcoin traded at $35 891.

Last week, on Wednesday, Bitcoin lost more than 30% of its value, dropping to almost $30 000, the lowest rate since the end of January. In mid April, the cryptocurrency peaked at about $65 000. At the moment, the search query "Should I sell Bitcoin?" took off on Google in the last week, according to CryptoSlate.

A JPMorgan report showed that large institutional investors are dumping Bitcoin in favor of Gold. Considering the sell-off in recent days, cryptocurrencies have seen incredible gains over the past year.

Bitcoin is up 268% last year, according to Coinbase, while Ether, the second largest cryptocurrency, is up more than 840%.

Cryptocurrency exchange Huobi said on Sunday that it has cut or suspended some of its services and products in some countries and has given up hosting miners in China in response to the country's recent government crackdown on cryptocurrency. Crypto analyst Nick Mancini called the cryptocurrency exchange's statement the reason for the latest Bitcoin drop.

The statement of the crypto exchange became a specific catalyst for the fall, earlier the market was pressured by concerns about the suppression of cryptography in China, the upcoming regulation of cryptocurrency operations in the United States and the fact that Tesla Elon Musk would abandon Bitcoin.

Huobi has announced the suspension of some of its services for trading futures contracts, leveraged investment products, exchange traded products (ETP). "Huobi always strives to comply with the changing policies and regulations of each jurisdiction to avoid risk and preserve the well-being of our users and their assets," the crypto exchange said in a statement.

It intends to suspend the sale of crypto mining machines and mining hosting services in China. The exchange said it will soon provide its customers with more details on what to do with their cryptocurrency mining hardware. She did not stop the operation of her own mining centers, but refused the hosting services that the exchange provides to everyone who wants to invest in mining. Hosting sites operate their customers' equipment with service, but do not own it themselves.

Huobi is a major provider of crypto trading services for Chinese crypto investors and owns the eighth largest mining pool in the world with a 4% hash rate (mining performance) of the entire Bitcoin network, according to BTC.com.

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Posted on May 24, 2021
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