China continues to drown bitcoin – financial magazine

Bitcoin fell sharply on Thursday after a new statement from the Central Bank of China. The first cryptocurrency fell by almost $ 2,500, approaching lows in a week and a half of about $ 32,000.

Bitcoin and stablecoins have become speculative instruments that threaten the security of the financial system and social stability, People’s Bank of China (PBOC) deputy chairman Fan Yifei said Thursday.

According to him, it was the threats emanating from the first cryptocurrency and stable blocks that caused the introduction of restrictive measures. Yifei promised that Beijing will introduce new measures against the cryptosphere soon.

In response to questions from reporters, Fan Yifei pointed out that private digital currencies and central bank digital currencies (CBDCs) should be separated. China will continue to actively promote the digital yuan and will use it during the 2022 Winter Olympics starting in February.

Calls for the introduction of tough restrictions on mining and crypto trading came from the Chinese authorities back in mid-May. In June, four provinces of China completely banned the mining of cryptocurrencies, and banks and other financial institutions of the PRC were banned from conducting operations related to digital assets, writes RBC.

As a result, more than 70% of miners were forced to turn off their equipment to move to other countries. The hash rate of the first cryptocurrency fell by more than 50% in a month.

Against this background, Bitcoin fell by 20% in two months. Experts agree that if the PRC authorities continue to put pressure on the market, then a further decline in bitcoin is inevitable.

“The current levels near the local lows of the last two months force us to follow further movements with a sinking heart. The failure of the first cryptocurrency under $ 30,000 is likely to kickstart a new wave of liquidation. But the most alarming for crypto enthusiasts is that such an outcome will underline the protracted nature of the correction, intensifying speculation around a new “crypto winter” as in 2018, “the FxPro team of analysts notes.

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