The capitalization of the cryptocurrency market has fallen by more than $120 billion on rumors that the Chinese authorities are planning to block access to cryptocurrency trading platforms.

The cryptocurrency market crashed from $702 billion to $559 billion. Bitcoin fell 12% to $12,206. Other cryptocurrencies also demonstrated a sharp decrease. So, Ethereum fell 18% to $1,086, Ripple lost 25% and fell to $1.36, and Bitcoin Cash decreased 21% to $1,929.

The smallest drop from the top 20 of cryptocurrencies was demonstrated by NEO, which earlier was growing, while the whole market was declining. NEO lost only 7% and now trades at $149.

The current crash of the cryptocurrency market is due to reports from China. According to Bloomberg, Chinese authorities are discussing the possibility of blocking access to the sites of foreign crypto-exchanges, as well as the closing of all exchange platforms registered in China. Later, Reuters received an internal memorandum of the government meeting, which confirmed such intentions of the People's Bank of China.

Given the global format of the work of crypto-exchanges, the news that users from China will lose access to trading led to a sharp drop in the cryptocurrency market.

Some bitcoin enthusiasts also suggested that the crash is due to the forthcoming Chinese New Year.  "Lots of money is flowing back to fiat to buy presents and plane/train tickets," a Reddit user wrote.

According to his suggestions, the crypto-market is antithetical to the stock market. If stocks boom when business is booming during the holidays, then crypto-investors, which are retail investors, sell during holidays, thus the crypto market falls.