Bitcoin price fell 5% today after it was revealed that the People’s Bank of China (PBoC) ruled all cryptocurrency transactions illegal.

Bitcoin price 4-hour chart | Source: Tradingview

In this context, let’s take a look at the development of cryptocurrencies over the past 12 years alongside the China FUD (Fear – Uncertainty – Doubt) and discover if there are any patterns.

China banned “virtual money“ for the first time in 2009

Chinese regulators have never been crypto advocates. When crypto was still in its infancy, in 2009, China’s Ministry of Culture and Commerce banned the use of “virtual currency” for real commodity trading. While the move isn’t specifically targeting Bitcoin, it appears to have set a precedent for anti-crypto regulations over the past decade.

The first Bitcoin-specific ban was introduced in 2013

In 2013, the PBoC did not allow Chinese financial institutions to conduct BTC transactions, calling the cryptocurrency a currency with no “real meaning”. The news caused the price of BTC to drop below $ 1,000 at the time when BTC China (BTCC) was still the highest-volume exchange.

However, the price rallied just a few weeks later.

words lol Ban threatens 2014

2014 taught us that fake reports from the PBoC regulator are sometimes as effective as the real ones.

In March, fake news was posted on Sina Weibo’s website claiming the central bank of China plans to suspend all Bitcoin transactions in the country and is expected to start in less than a month. Although the report turned out to be fake news, it had a significant impact on Bitcoin price.

At the same time, China-based exchange FXBTC announced it would close due to regulatory threats to ban the exchange. The two crashes together could have caused Bitcoin to drop from $ 709 to as low as $ 346.

While admittedly very bloody, the price began a short-lived rebound, back above $ 600 by the end of May.

TO DRAWChinese stock market hack “Shock” crash the market in 2016

Though not directly suppressed by China, the major Hong Kong-based exchange Bitfinex fell victim to one of the biggest hacks in August 2016. Attackers stole around 119,756 BTC – worth more than $ 5 billion at the time of writing – and some of the funds are still being tracked to this day. At the time, news of the hack was believed to have caused BTC price to drop more than 10% in two days.

However, by September the price had recovered to pre-hack levels.

China proclaim Cryptocurrency-related ban twice a month in 2017

In September, the Chinese government officially banned domestic user exchanges, and the PBoC announced that Chinese nationals would not be allowed to fund ICOs.

Just 3 months later, Bitcoin rose from $ 4,000 to an all-time high when it was around $ 20,000.

Right now, BTC is headed for one of the greatest bulls of all time, even as BTCC says it will close amid the “ban” government (although they are still active) and PBoC’s deputy governor claims that Bitcoin will one day will die prematurely.

However, at this point the price was recovering and seeing only minor declines.

news the media root cause Crisis of confidence fast in 2018

As of January 2018, multiple sources circulating Chinese nationals may have pushed the price of the cryptocurrency down sharply.

Even so, many attribute this decline to Chinese media reports claiming the country is cracking down on crypto mining. In mid-February, Bitcoin price fell more than 65% to $ 6,852.

The process didn’t take long, however, and the price returned to over $ 11,000 by the end of the month.

FUD bitter in 2019

Bitcoin price fell slightly in April 2019 when a draft by China’s National Development and Reform Commission revealed that the government agency was considering re-banning mining.

The PBoC also followed the news notification Crypto transactions are “processed immediately” when they are detected.

Although the price fell rapidly, it also reached an all-time high shortly thereafter.

China is accused of being behind the “crypto bloodbath” in 2020

The March 2020 “crypto bloodbath”, which saw the price of almost all major tokens falling at the start of the COVID-19 pandemic, was largely attributed to the liquidation of their holdings by Chinese miners.

Then in November 2020, the Hong Kong government announced a plan to ban cryptocurrency retailers in order to implement a plan to combat money laundering activities.

COVID’s first year ended with Bitcoin breaking the $ 20,000 mark for the first time in three years, hitting an all-time high of over $ 30,000 before the end of 2020.

FUD currently now on

As reported by Cointelegraph, the National Internet Finance Association of China, China Bankers Association, and China Clearing and Clearing Association issued a statement in May 2021 reiterating their warning against investing in cryptocurrencies.

The following month, the PBoC ordered Chinese banks and mobile payment service providers not to offer banking and payment services to customers involved in crypto-related transactions.

Next in June, officials put a mining ban, leading to a mass exodus of miners into the country.

As of yesterday, the PBoC again declared all crypto transactions in China to be illegal.

Total Number of Cases China’s FUD Failed to Kill Crypto: 19

Including the most recent announcement by the PBoC, there have been 11 direct announcements from Chinese and Hong Kong regulators about the enforcement or implication of a ban on cryptocurrencies, exchanges, or mining incidents (such as hacks and decisions by domestic crypto companies) leading to price drops. Overall, China has “banned” or created FUD in the crypto space more than 19 times since 2009.

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Minh Anh

According to Cointelegraph

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