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Bitcoin & Etherum Drop as China Declares Cryptocurrency Activities Illegal

Bitcoin & Etherum Drop as China Declares Cryptocurrency Activities Illegal

Justin McQueen, Strategist

Bitcoin Analysis & News

  • China Announces Crypto Crackdown Yet Again
  • PBoC Declares Cryptocurrency-Related Activities Illegal
  • Cryptos Slide on Crackdown

China Announces Crypto Crackdown Yet Again

Once again, China has announced that they will be cracking down on Cryptocurrency mining and while this has been a reoccurring theme, regardless of that fact, Cryptocurrencies are yet again reacting to the headlines and thus remain noteworthy.

PBoC Declares Cryptocurrency-Related Activities Illegal

The Chinese State Planner noted that they will not allow financial support for new Cryptomining projects or allow these projects to participate in electricity markets. Additionally, the PBoC weighed in and stated that they will prevent and dispose of risks from Cryptocurrency speculation, by preventing overseas virtual currency exchanges from providing services to Chinese residents via the internet. The PBoC added that Cryptocurrency-related activities are illegal, which includes no legal Crypto exchange, exchange between virtual currency, token issues, derivatives and providing information.

Cryptos Slide on Crackdown

In reaction to the announcement, Cryptos drifted lower with Bitcoin dropping 4.5% and Etherum falling over 7%.

Bitcoin Chart: Intra-day Time Frame

Source: IG

Etherum Chart: Intra-day Time Frame

Source: IG

As I mentioned above, China announcing crackdowns on Cryptocurrencies have been a reoccurring theme as the timeline below highlights.

China Crypto Crackdown Timeline

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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