Amidst China’s Covid-Zero Mobility Restrictions, Crypto Suffers Severely

• Bitcoin, at one point went down 3.2% and was trading at about $16,170.
• Moreover, rumors around a possible insolvency of wETH reportedly led to massive sales of Ethereum.
• As a result, Ethereum went down nearly 4%.

Amidst the ongoing protests in China against stringent Covid-zero mobility restrictions, cryptocurrencies including Bitcoin and Ethereum suffered severely on Monday.

Accordingly, one of crypto market’s leading  cryptocurrency, Bitcoin, at one point went down 3.2% and was trading at about $16,170 at 12:40 p.m. in Tokyo. Ethereum (ETH) slid nearly 4%. At the time of writing, Bitcoin is trading at $16,212.45 and ETH is trading at  $1,170 respectively.

Solana (SOL) and Dogecoin (DOGE) also fell with severe losses. At the time of writing DOGE is trading at $0.0955 and SOL is trading at $13.47.

Not just this, an “inside joke” between influential crypto figures about a possible insolvency of ‘wrapped Ethereum’ (wETH) reportedly caused massive sales of Ethereum and other ‘tokens’ as rumors around wrapped Ether’s insolvency took Twitter by storm.

While others have tried to bust the rumor and explained that wrapped Ether wouldn’t suffer much as they are smart-contracts based. Due to the fact that they work on automatically running smart contracts, no entity or person can manipulate them.

Moreover, as for Bitcoin’s November performance, the token is down nearly 21% which marks its worst monthly performance since June.

Crypto markets aren’t the only one to suffer as even Asian stocks and US equity futures saw a dip too. Infact, the ongoing China crisis has further aggravated the worsening situation that was caused due to FTX collapse. FTX collapse sent shock waves across the crypto world and has made the market situation only worse.

China’s situation might further affect the supply-demand chain of commodities, only to provoke inflation and eventually cause the interest rate to grow.