China against Cryptocurrency and Commodity Prices

The cryptocurrency market continues to experience a fever. As a result, the HSBC head could not resist and said that his bank did not plan to launch cryptocurrency trading or offer cryptocurrencies as investments to clients. Motivation: they are too unstable and lack transparency.

In general, these are very difficult times for the cryptocurrency market. Cryptocurrency mining operators including Huobi Mall and BTC .TOP suspended their operations in China on Friday after Beijing stepped up its efforts to tackle Bitcoin mining and trading. Chinese miners account for about 70% of global mining. Rumors spread throughout the market that Chinese mining pools would start dumping their bitcoins in order to avoid a conflict with the Chinese authorities. This will naturally put pressure on the price of the already bloodless bitcoin.

In general, the Chinese authorities have become more active lately. And one cryptocurrency market is clearly not enough for them. In particular, China has stepped up its fight against soaring commodity prices with the help of a government commission that said there would be "zero tolerance" for "excessive speculation," which it said contributed to the recent rally. As a result, iron ore futures fell like a number of other commodity items. This news fell on an already rather favorable backdrop - this refers to the fears of participants in commodity markets that demand for Chinese commodities has reached a peak, as the country's central bank is gradually limiting the flow of money into the economy, and financing of infrastructure projects is slowing down.

So selling commodities may be a good trading idea, especially from the current clearly overpriced prices. Those who do not want to take unnecessary risks can trade in the foreign exchange market with commodity currencies such as the Australian and Canadian dollars. Naturally, we are talking about selling them.