Bitcoin and Ethereum plunge hard, all prices deep in the red on news from China on ban

The cryptocurrency market was able to recover nicely from a significant dip in recent days and most prices were still green this morning. However, China is throwing a spanner in the works again.

The People’s Bank of China, China’s central bank, has on its website announced that it will act even harder against crypto. A memo suggests that China may ban all non-owned crypto trading.

“Recently, hype activities for virtual currency trading have increased, disrupting the economic and financial order, fostering illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes and money laundering.”

According to the PBOC. It means that even the over the counter (OTC) trading, which is very popular in China, may now also have to rely on it. However, it would befear, uncertainty & doubt” (FUD) which is already several weeks old:

Despite this, the news quickly catches on and creates a lot of fear in the market. Bitcoin (BTC) just seemed to finally recapture $45,000 but just dropped to $41,000 in less than two hours. It’s a loss of almost 9%. Still, BTC may seem to find support here, but it doesn’t look stable.

Ethereum (ETH) is down from $3,100 all the way to $2,750, down as much as 11.3%. At the moment, the tokens of cryptocurrency exchanges Huobi and OKEx are falling the hardest. Probably because the status of these crypto exchanges is now somewhat uncertain. Huobi token (HT) drops from $12.1 to $9.5, a loss of 21.5%. OKB is down from $16.9 to $13.4, a loss of 20.7%. The total market cap of crypto just dropped to $1.90 trillion.

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The news has completely lost the recovery of the past few days and most prices are more than 15% down from a week ago, and in many cases even more than 20%. Whether we can see a recovery again soon remains to be seen. The reason China is doing this probably has to do with the upcoming e-yuan, a central bank digital currency (CBDC), to make.

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