China outlawed any cryptocurrency transactions - Bitcoin fell by $ 3500

The People's Bank of China (Central Bank of China) announced that all cryptocurrency-related transactions are illegal and subject to a ban. This announcement is perhaps the strongest signal that the regulator is determined to fight the entire industry.


The official website of the People's Bank of China published a message that all crypto assets, including bitcoin and Tether, are not fiat currencies and cannot participate in the circulation on the market. All cryptocurrency-related transactions, including the services that offshore crypto exchanges provide to local residents, are illegal financial activities.

According to one of the versions, this statement may be a reaction of the Chinese government to the activities of miners, who in some cases could continue their activity in the country in order to stay in business.

The experts noted that the Chinese departments had previously published similar statements, but now, due to objective circumstances, a particularly "nervous environment" has developed for investors. As a result, an active sale of risky assets began. In addition, Beijing said that the task of eradicating the practice of cryptocurrency mining in the country is urgent - the adoption of appropriate measures is necessary to achieve the set goals for carbon dioxide emissions.

Antoni Trenchev, co-founder of crypto-loan service Nexo, noted that investors should expect “a sharp price reaction as China took the wind out of bitcoin's sails. The recent rebound from the level below $ 40K is probably exhausted by now. "

The investors' reaction turned out to be really pessimistic. On the morning of September 24, the cost of bitcoin exceeded $ 45 thousand, but after the announcement of the People's Bank of China, in just an hour, the asset lost $ 3 thousand.As of 15:00 Moscow time, the cryptocurrency was trading slightly more than $ 41.5 thousand.

Following bitcoin, most of the other popular cryptocurrencies fell in price. For an hour, the Ethereum token lost 7% in price, the Cardano and Binance Coin cryptocurrencies fell 6%. The largest decline was demonstrated by the token of the cryptocurrency exchange Huobi - 15%. The collapse in prices affected not only crypto assets, but also the shares of industry companies. Thus, the securities of the Coinbase crypto exchange fell 2% to $ 237.5. Shares of MicroStrategy and Square lost 1% each.

And the day started off pretty well for Bitcoin. Before the scandalous announcement of the Chinese central bank, the largest crypto asset began to grow amid news that Twitter allowed supporting its favorite bloggers with bitcoins - the new function was implemented using the Strike wallet, although so far it is only available to users of the iOS version of the application.

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