China’s “new” Bitcoin (BTC) ban has pushed the largest cryptocurrency down just by 5% in the last 24 hours. This shows China’s repeated bans on Bitcoin are having every single time fewer effects on the market. The main question is whether this is just a bump in the road towards new highs or a change in the trend for Bitcoin.
China Bans Bitcoin… Again
Over the last years, we have seen how China tried to ban Bitcoin over and over again. The efficiency of this measure has been certainly limited, as it only affected Bitcoin’s price for a short time. This time, China decided to issue a new ban on the largest cryptocurrency that seems to have a limited impact on Bitcoin.
According to the People’s Bank of China (PBOC), Bitcoin and cryptocurrencies disrupt the entire economic and financial order and they are also responsible for breeding illegal and criminal activities (including gambling, pyramid schemes and money laundering, among others).
With this memo released by the PBoC, they are asking for additional information from Chinese entities to clarify the attributes of virtual currencies and how they could have an impact on different businesses and activities. Moreover, local institutions are also trying to identify trading activities to better understand their impact on the economy.
According to data provided by Coingecko, Bitcoin has fallen close to 5% after the information about the ban was published by the People’s Bank of China. BTC is now being traded close to $42,700 and it has a market valuation of over $800 billion. But Bitcoin was not the only virtual currency to fall due to this news.
Ethereum (ETH), Binance Coin (BNB), Polkadot (DOT) and Dogecoin (DOGE) fell more than 5% during the same 24-hours period, showing a moderated weakness in the cryptocurrency market. Despite that, we see that the entire crypto market has reacted positively if compared to previous China bans.
In 2017, Bitcoin fell by close to 30% due to a similar ban. Nonetheless, after this ban, things didn’t change as many expected. The market continued operating and Bitcoin was not affected for a long time. Will this time be different? The market does not seem to think so, as BTC couldn’t move below $40,000 and stay there for a longer time.
It would just be a matter of time before Bitcoin stabilizes and starts moving higher again. Which is going to be the catalyst? That remains to be seen.