Bitcoin: Chinese central bank strangles price recovery – all crypto-related services illegal in China
The recovery movement of the bitcoin price and the rest of the crypto market was again thrown a stick between the legs, as the Chinese central bank once again fired against the crypto sector. After worries about the Chinese company Evergrande, which had shaken up the traditional financial markets in recent days, also spilled over to the crypto sector, Bitcoin was able to fight its way back over the $ 45,000 mark in the last two trading days However, the latest statements by the Chinese central bank have been set back significantly. The cryptocurrency is currently 5 percent in the red, at just over 42,000 dollars.
In a Q&A posted on its website, the People’s Bank of China said that services that offer trading, order matching, token issuance and virtual currency derivatives are strictly prohibited. Overseas crypto exchanges offering services in mainland China are also illegal, the PBOC said. “Overseas virtual currency exchanges that use the Internet to provide services to local residents are also considered illegal financial activities,” the PBOC said, according to a CNBC report. With this, the Chinese central bank repeated earlier comments on the handling of crypto services and also made it clear once again that domestic banks and payment providers are prohibited from offering all kinds of services of this kind.
onvista editorial team: The statements of the Chinese central bank are not really new, but merely a repetition of earlier statements and prohibitions. After the execution of initial coin offerings and most of the trade in cryptocurrencies were banned in 2017, the Chinese government also pulled the plug on the mining industry, which had been strongly represented in China up to then, in the first half of this year. The latest statements on bans on all services are a warning to both domestic companies and foreign providers to make crypto assets in China inaccessible to the population.
Completely surprisingly, this news no longer hits the crypto sector, as the foreclosure of China from this market is already expected and is likely to be priced in accordingly. Nevertheless, the renewed pressure from this side comes in a difficult market phase and has again driven the price to important trend indicators. The 200-day trend is now in the range of $ 45,600 as resistance, the bull market support band for Bitcoin formed by the simple 20-week trend and the exponential 21-week trend is retested with the recent downward movement.
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Only a week-end below this zone would, however, cause significant damage to the chart.
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By Alexander Mayer
Cover photo: Andrey Suslov / Shutterstock.com
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