The crypto market turned upside down on fears over House Speaker Nancy Pelosi’s visit to Taiwan. “There will be serious consequences if Pelosi visits Taiwan,” warned Zhao Lijian, China’s foreign ministry spokesman.
Just as in the stock market, in the crypto world, the news of a flare-up between U.S.-China relations has permeated the market with a bearish sentiment. In less than 24 hours, the value of the oldest cryptocurrency, Bitcoin, fell by 1.8%.
Meanwhile, the Ethereum blockchain token Ether— which had been gaining value in a hurry due to the expectations caused by its protocol transition— has also started to decline and, at the time of writing this article, has lost up to 5% of its value, standing at $1,586.
“We are fully prepared for any eventuality. The People’s Liberation Army [PLA] will never stand idly by. China will take strong and resolute measures to safeguard its sovereignty and territorial integrity,” Lijian warned.
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As in any other market, cryptocurrencies react badly to geopolitical adversity and risk they cannot control. Although China banned cryptocurrency mining a year ago, the Asian giant remains one of the largest crypto hubs in the world, even though digital tokens are practically illegal in the eyes of Xi Jinping’s government.
The Chinese nationalist press has suggested escorting Pelosi’s plane with fighter jets or even declaring a no-fly zone around Taiwan to prevent the arrival of the American congresswoman.
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica