Ether Prices Fell Below $3,000 Today—What’s Next?

Ether Prices Fell Below $3,000 Today—What’s Next?

Ether declined with many digital assets today, pushing lower after the markets reacted to the latest announcement made by The People's Bank of China (PBOC) that it was banning virtual currencies. The central bank specified that it had forbidden any services that offer derivatives, order matching, token issuance and derivatives involving virtual currencies, according to CNBC. "Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity," the financial institution said, according to text that was translated by CNBC. The announcement specifically singled out both bitcoin and ether as being virtual currencies that do have the same status as legal tender. It described them as illegal, noting that they are not issued by monetary authorities. Cryptocurrencies reacted sharply to this news, with bitcoin dropping almost 10% in less than 4 hours and ether falling 12. 1% during that time, CoinDesk data shows. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] Several market observers weighed in on this situation, offering their perspective on the latest news from the PBOC. "This isn't the first