FUD Bank of China Bans Crypto

Bitcoin saw a sudden drop in price from around $ 35,500 to $ 31,000 yesterday. This drop in prices is said to be influenced by news of China’s OTC ban.

First, the People’s Bank of China (PBOC) forced major banks and payment platform Alipay to stop providing crypto-related services.

The Agricultural Bank of China (AgBank) also released a statement stating that it will conduct customer due diligence to find any activity related to cryptocurrency trading and to close this account.

Since China previously banned exchanges like Binance, OTC exchanges are the country’s primary crypto gateway. If the banks stop supporting this, OTC exchanges will not work and the Chinese will no longer be able to buy and sell crypto.

The PBOC issued a recapitulative statement but quickly withdrew it, but with no explanation. This means that we still have to wait for a new official announcement from the PBOC.

Before that, many investors sold Crypto through OTC exchanges to get out, which caused the price of USDT-RMB to drop on the three major Chinese exchanges. The Huobi exchanges fell to a minimum of 6.25, Binance to a minimum of 6.22, and Okex to a minimum of 6.3.

Indeed, if China were to put a ban on banks and close crypto-related accounts, it would mean a ban on mining, the exchange ban, the ban on ICOs, and the ban on OTC related to BTC and crypto.

After this news, we see many investors on social media and other channels who suffered more as prices fell. Fear has also grown, with many Chinese investors selling heavily in crypto following the country’s bank announcement.

Miners have started to leave China.

In addition to the bad news of China’s mining ban, mining pools have started moving miners to other countries.

The Guangzhou logistics company has confirmed to CNBC that it is shipping 3,000 kg (6,600 pounds) of Bitcoin miners to Maryland, United States. Fenghua International Company is the shipping unit supplied to these excavators. Taxes on both ends are collected for payment at a low rate of $ 9.37 / kg.

Then on June 21, BTCM (http://500.com) announced that their first group of 320 miners had arrived in Kazakhstan. The second and third batches of 2,600 machines are expected to arrive on July 1st. The company ceased mining operations in Sichuan Province on June 19.

Just like the mining ban in China, mining companies have moved to other countries to continue their BTC mining business.

Over the years, China has also taken steps to restrict BTC and crypto. This time around, however, China has actually stepped up its hold on crypto. There are a number of reasons why China wants to ban crypto in order to launch its own digital currency.

When miners stopped mining in China, BTC’s mining hash rate dropped. However, with the mechanism of mathematics, the decrease in BTC mining speed will decrease the mining difficulty. At this point, the number of BTC born is still guaranteed.

Controversial information from CEO CryptoQuant

In a controversial tweet from Ki Young Ju – CEO of CryptoQuant, he said that BTC entered the crypto winter with an analytical chart.

“I hate to say that, but it looks like the BTC bear market has been confirmed.

Too many whales are sending BTC to exchanges. “

Soon after, many people said this was the first chart they’d seen and criticized his tweet.

At the same time, this chart does not reflect correctly. Because this chart shows when the market is falling, whales are selling and when the market is rising, retail investors are selling. However, the reality reflects the opposite. When the market goes up, whales sell; when the price goes down, the market panics, small investors create great selling power.

Ki Young Ju then shared a corrected tweet that what he meant was that the BTC market would enter a downtrend over the next several weeks, not long-term.

Yesterday’s market also had other standout information like this:

• The Bank of England TSB announced that it is not assisting users in buying and selling crypto. Similar to HSBC, TSB has also been involved in money laundering problems, so is very careful with crypto. But other big banks in the US like JP Morgan, Morgan Stanley, Paypal, … continue to assist users in buying and selling crypto.

• MicroStrategy company announced the successful purchase of 13,005 BTC at an average price of $ 37,617, the total amount of the purchase of this company was $ 489 million. To date, the total amount of BTC that MicroStrategy holds has reached 105,085 BTC, which is equal to $ 2.747 billion, the average price of BTC purchased is $ 26,080.

• Billionaire Steve Cohen, president and CEO of Poin72, said he doesn’t want to miss the opportunity to get into crypto, although he doesn’t know if the market will go up or down in the short term, but he’s more interested in altcoins. The crypto market is supported and invested by another big billionaire.

• Billionaire Mark Cuban defends Bitcoin. He said that Bitcoin cannot be compared to gold because it is better than gold, easy to store, move, without middlemen, and can be broken down into fractions.

• Paraguay plans to introduce a similar law to adopt BTC next month after El Salvador. This country has its own currency and a low inflation rate of only around 2%. So, if they choose to adopt BTC, they want to attract crypto companies to get more income and benefits from developing this market.