Crypto markets still trending up despite China’s crackdown, traders avoid panic and lose stocks

The People’s Bank of China (PBoC), the country’s central bank, has Upload A Q&A list on their website stating that Chinese citizens participating in virtual currency exchange overseas “are considered illegal financial activities.” The PBoC also reiterates its comments made in the past, stressing that “financial institutions and non-bank payment institutions” are not authorized to process cryptocurrency-related payments.

PBoC is shaking up the crypto market

The crypto market rocked on the afternoon of September 24th after the central bank of China said again that crypto is not welcome in the country. The PBoC has been chewing the same things over and over again since 2013 and 2017 when it officially banned the country from trading. In 2021, when the crypto economy hit new heights, the Chinese government took action against the miners working in the country. The ban caused the Bitcoin hash rate to plummet, forcing many Chinese miners to migrate abroad.

Analyst Alex Krüger has tweets on September 24th:

“The PBoC publishes a detailed Q&A list with mostly nothing new. This has been described by Bloomberg as “the biggest blow ever to the trillion dollar industry”.

Now the central bank of China is warning citizens of “illegal” behavior in the use of cryptocurrencies. According to the response on the official website, the PBoC stated that virtual wallets providing services to people in the country are illegal and are being investigated.

“Overseas virtual wallets that use the internet to provide services to local people are also considered illegal financial activities.”

At the same time, employees of these international exchanges are examined to determine whether the exchange provides services for domestic users.

“Financial institutions and non-bank payment institutions are prohibited from providing services for activities related to virtual currency.” PBoC emphasizes.

NS indicator on the chain: BILLIONBull market should continue in the fourth quarter

Amid negative news from China, the crypto economy is recovering from its recent slump amid concerns over the Evergrande “debt bomb”. In a note, the CEO of the crypto hedge fund ARK36, Ulrik K. Lykke, emphasized that this is the seventh time since 2013 that the Chinese government has cracked down on Bitcoin.

“Once again the Chinese government is cracking down on Bitcoin. They have done this at least 7 times since 2013 and 2 times this year. As the market falls in price each time, the impact is less and lasts for a shorter period of time. The story “China bans Bitcoin” has therefore almost achieved joke status in the crypto community. Investors should be careful not to make emotional decisions based on sensational news, as many fundamental on-chain indicators still point to a continuation of the bull market into the fourth quarter. “

Analyst Tim Pool comment To the current situation:

“Now all the poor people will panic selling. Rich people will buy it, and then its value will soar and the poor will take it.

Bobby Lee: “Action is destroy“

Bobby Lee, founder of Ballet, one of China’s first bitcoin exchanges and cold store wallet companies, says the Chinese PBoC’s warning isn’t the end.

Bobby Lee – Founder ballet

“Don’t panic: China has just banned Bitcoin again. This time around, the ban targets trading on foreign exchanges (using VPNs), as well as local businesses or OTC services that allow the exchange of CNY for USDT, BTC and vice versa. That may sound bad, but it really isn’t the final act of destruction, “Lee comment on twitter.

Neeraj K. Agrawal has opinion same, similar: