The blockchain just can’t catch a break lately, and that’s put the hurt on VeChain (CCC:VET-USD) as much as any of its cryptocurrency peers. Currently trading around 11.8 cents, VET-USD is down more than 25% in the past 24 hours. Its offshoot coin VeThor (CCC:VTHO-USD) is likewise down nearly 19% over the past 24 hours.
VeChain is a supply and logistics blockchain built for businesses to track inventory from inception to point-of-sale. Trading volumes of VET-USD and VTHO-USD are up 125% and 122% respectively over the past 24 hours.
Unless you’ve been under a rock and away from the Web, you might have noticed cryptocurrencies aren’t doing so hot. The catalyst for Wednesday’s precipitous drop was of course news of a serious clampdown on cryptocurrency usage in China. While China’s anti-cryptocurrency stance is old news, the announcement by government financial watchdogs seemed to signal a new, more intense phase of regulation.
Some of VeChain’s strategic partners, including National Research Consulting Center and Yida China Holdings, are based in China. Further complicating matters, some of these partnerships are with Chinese government-owned businesses, such as Direct Imported Goods and China Unicom, or even the Chinese government itself, as in the case of the Gui’an New Area economic-development zone.
While these partnerships date back to 2017 and 2018, at the very least they suggest there is some contention between various divisions of the Chinese government when it comes to blockchain-based assets. And for comparison, U.S. Treasury Secretary Janet Yellen has been a vocal critic of cryptocurrencies, but that hasn’t led to much change in business for cryptocurrencies in the U.S.
Tuesday’s news out of Beijing compounded last week’s bearishness on blockchain after CEO Elon Musk tweeted that Tesla (NASDAQ:TSLA) would no longer accept Bitcoin (CCC:BTC-USD) as payment due to environmental concerns. That announcement spurred a wave of interest in greener cryptocurrencies as the markets reacted.
Generally, investors are wondering if the cryptocurrency bubble has finally burst; unsurprisingly, many would say no.
Currently trading for just over 12 cents, where does VET-USD go next? Here are some VeChain (VET-USD) price predictions.
VeChain (VET-USD) Price Predictions
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.