China's crackdown, expectations that the Federal Reserve would begin to unwind its stimulus program, and persistent demand for downside hedges were all driving down bitcoin prices. As a result, the biggest cryptocurrency was trading near $34,824 at 10:39 UTC on Wednesday, down over 41% from April to June.
Ant's IPO was blocked by Chinese regulators, who forced the business to restructure into a financial holding company, a move that is likely to bring some of the company's more wayward operations under control. Alibaba was also hit with a record $2.75 billion antitrust penalty as China tightens its restrictions on the growing platform economy.
Berkshire Hathaway Inc Vice-Chairman Charlie Munger praised China's decision to impose significant restructuring on Ant Group, the fintech powerhouse whose record regulators halted a $37 billion IPO in November. However, the 97-year-old believes the United States should follow China's lead and intervene early to avoid suspicion.
Electric Cars Market
Tesla is the world's leading electric vehicle manufacturer. Still, according to UBS, it is up against the stiffer competition in China, with stronger opportunities emerging among other manufacturers for investors hoping to cash in on the expanding trend.
UBS analysts cut their price target on Tesla TSLA -1.16 percent shares by 10%, from $730 to $660, citing pressure in China, as well as delays in Tesla's self-driving vehicle and Model Y's European launch.
NIO, a Chinese electric vehicle maker, has seen its shares rise. While an increase in options trading volume isn't the only reason for the gain, it certainly assists equities to soar on Monday.
The stock of NIO (ticker: NIO) increased by about 10% on Monday, giving it a month-to-month gain of 28%. The S&P500, on the other hand, rose 0.2 percent on Monday and is up 2% in the last month. The fact that call options volume jumped by nearly 200 percent on Monday compared to Friday could be the most significant factor for the increased volatility in NIO shares.