Earlier today CNBC published an article suggesting that the Chinese government is moving to ban the trading of cryptocurrencies.
The article cites a government memo exposed by Reuters.
In the memo, Pan Gongsheng, Vice Governor of the People’s Bank of China allegedly said that the government would “continue to apply pressure to the virtual currency trade”.
The crypto markets reacted sharply following this news, with Ripple and Cardano dropping as much as 28%.
This reaction is surprising, as the news was not an official statement of intent.
Moreover, the largest Chinese exchange, Huobi, has already relocated to Japan.
The large drop highlights once again the volatility of cryptocurrency markets, vulnerable to rumour and speculation.
Once the dust settles, the markets will most likely bounce back, continuing the bull run.