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This is not China’s first attempt. Beijing regularly announces measures against cryptocurrencies<\/strong> in an effort to protect consumers from what the government sees as mere speculative assets<\/strong> threatening Chinese savings. But Friday’s announcements go further. The total ban on all financial transactions<\/strong> involving crypto-currencies<\/strong> was enacted, causing Bitcoin<\/strong>‘s price to fall 6% to \u20ac36,116, which was echoed by other crypto-currencies, including Ethereum<\/strong>, which lost more than 9% to $2859.<\/p>\n <\/p>\n The announcements sent cryptocurrency<\/strong>-related stocks tumbling<\/strong> on the Hong Kong stock exchange, with one of its subsidiaries, Huobi Tech, losing nearly 30% after the opening bell.<\/p>\n <\/p>\n The crackdown is also intensifying. In addition to the ban announced on Friday, Chinese regulators said foreign exchanges were no longer allowed to provide services to cryptocurrency<\/strong> investors.<\/p>\n <\/p>\n Despite all these announcements, panic has not taken hold of the market. Indeed, this is not the first time China has cracked down on cryptocurrencies<\/strong>. Already, at the end of August last year, and again before that in May, the Beijing government took measures against crypto-currencies<\/strong>, without causing panic. The declines that followed such announcements quickly underwent readjustments, and this is still what is happening now.<\/p>\n <\/p>\n Since Friday, Bitcoin<\/strong> has recovered 2.4% to $44250, while other crypto-currencies<\/strong> are following the same pattern. Ethereum<\/strong>, for example, is up 3% to $3163 and has recovered its losses from Friday. The cryptocurrency<\/strong> market therefore looks solid, and the jolts that have shaken it in recent days are just a short-term reaction to the Chinese announcements. The market is entering a correction and returning to its pre-announcement values, as was the case in May and August.<\/p>\n <\/p>\n <\/p>\n