A massive cryptocurrency market crash has taken place, and chances are, it will continue to fall. These falling prices have been felt far and wide in the cryptocurrency market with another sell-off taking place earlier today. All this comes as a result of criticism of the cryptocurrency market by China’s President Xi Jinping a few days ago. 

While only one day has passed, this recent market fall has been like a year for most cryptocurrency holders, with the last 24-hours being more troubling than they expected. Immediately after President Xi Jinping’s remarks, everything started changing in the digital currency space and within the last 24 hours, over $10 billion was lost in the cryptocurrency market.

Cryptos Come Falling Down

According to collected data, the overall market capitalization of all digital currencies has dropped by approximately 5% over the last 24 hours across the world. This is the second time we are experiencing such a big decline in the market within just a month. The big question now is, is everything going to be okay?

Looking at the figures keenly, it is clear that the top 30 cryptocurrencies, in terms of market capitalization, are now in the red. This drop in the markets is evidently not so good for cryptocurrency holders and traders. Ethereum (ETH), Bitcoin (BTC), and XRP, which are some of the biggest digital currencies, have declined by approximately 4-5% each. 

That is not all. Looking at other cryptocurrencies, you will find that they have experienced an even further drop. EOS and Litecoin (LTC) have both dropped by more than 5.2%, while Bitcoin SV (BSV) and Bitcoin Cash (BCH) have fallen further by a 9.2% and 8.2% drop, respectively, since yesterday. These big losses come off the back of almost three weeks of decline for the biggest digital currencies in the market.  

China Changes Position on Cryptos

It is evident that the turn of events, where the cryptocurrency market is declining, is mostly happening in response to the remarks made by President Xi Jinping of China. He made a statement saying that his previous comments showing he supports cryptos were misinterpreted. He went on to say that he in fact does not support digital currencies and he feels that they are simply unregistered securities that were facilitating Ponzi operations and fraud schemes. These remarks clearly had a negative impact on the entire cryptocurrency market.

It is important to note that President Xi Jinping does strongly believe in the future potential of blockchain technology, but he has no faith in public cryptocurrencies. Interestingly, this comes as China prepares to release its own public digital currency (CBDC) next year. 

If we take an overview of the financial markets, it is evident that the cryptocurrency market is stale and in general, it seems that the interest of investors is declining quickly. With 2019 almost coming to an end, it seems that most investors are looking forward into 2020, with eyes on April 2020, when Bitcoin is expected to halve. Can the market hold on until then?