Bitcoin slumps as China bans all cryptocurrency transactions

[D-law]

China has delivered its toughest blow yet to the crypto industry by declaring that all crypto-related transactions will be considered illicit – including services provided to offshore exchanges.
Crypto-related transactions will be considered illicit financial activity, including services provided by off-shore exchanges, the People’s Bank of China said on its website on Friday.
China banned all crypto transactions and vowed to root out mining of digital assets, delivering the toughest blow yet to the industry.

Crypto-related transactions will be considered illicit financial activity, including services provided by off-shore exchanges, the People’s Bank of China said on its website. It added that cryptocurrencies, including Bitcoin and Tether, are not fiat currency and cannot be circulated.

Bitcoin slumped in the wake of the announcement, falling 8% to about $41,000 as of 9 a.m. in New York.

Chinese officials are going further to stamp out crypto trading for its ties to fraud, money laundering and excessive energy usage. China already has rules that bar banks from offering crypto-related services. To get around such rules, traders have moved to over-the-counter platforms and offshore exchanges.
Crypto mining’s massive energy consumption is also part of the reason the industry is coming under scruntiny. In a separate statement, China’s economic planning agency said it’s an urgent task to root out crypto mining and the crackdown is important to meet carbon goals.

China is facing a severe power crisis that’s already roiled commodities from aluminum to steel, and several industries have seen their power supplies curbed in the last few weeks.

The country is home to a large concentration of the world’s crypto miners and as recently as April had a 46% share of the global hash rate, a measure of computing power used in mining and processing, according to the Cambridge Bitcoin Electricity Consumption Index.

“The Chinese regulators have always been extreme in their views and these comments are not new,” said Vijay Ayyar, head of Asia Pacific with cryptocurrency exchange Luno in Singapore.

“The interesting part is also why they continue making these statements. Its probably because they sense continued unabated activity in China and hence having to go on an overdrive,” he added.

China’s renewed crackdown against crypto mining and trading activity started in May. That was the first time top officials had singled out crypto mining at the national level since dropping it in 2019 from a proposed list of dirty industries to be eliminated.

The move caused a collapse in crypto prices, with Bitcoin losing about half its value between April and July this year. While the market has since recovered some ground, it’s still far below the all-time high of $63,000.

https://www.aljazeera.com/economy/2021/9/24/bbbitcoin-slumps-as-china-bans-all-cryptocurrency-transactions

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[Wakate]

China has been against the existence of cryptocurrency for the recent time making the market to ranging with cost. No matter what happens now, I believe Bitcoin and the crypto market will still surge ahead the track. Bitcoin had been having similar attacks for the past years now and these had been making the crypto market more strong every single time the market recovers.

[suryogandul]

China seems to have its own policy that does not support the global crypto market. maybe china has a different view of the global market or has a specific goal towards bitcoin. But what China is doing is very detrimental to the global market and disrupts the market. China should be able to think more about its policies so that the global crypto market can continue to run

[enhu]

China seems to have its own policy that does not support the global crypto market. maybe china has a different view of the global market or has a specific goal towards bitcoin. But what China is doing is very detrimental to the global market and disrupts the market. China should be able to think more about its policies so that the global crypto market can continue to run

Just when you thought the price will recover faster after the dip, China wants to push it down. They have done this before and they know BTC won't die that way.
The government clearly doesn't want cryptocurrency mining, in general, that's very clear at least.

But regulations about Bitcoin and owning cryptocurrencies have different rules for this country and I think the same is happening in most countries even in the US the regulations is not very clear.

[Ausgewielt]

I hope China's government don't pressing their citizens too much. In my point of view, if China continue to make their citizens stress then it just create a time bomb. When the time is come then china government will have very big trouble. All people have their right for limited freedom but if they feel that they don't get any freedom in their country they will try to escape, if they can't then maybe they will fight. Many countries trying to surpass China's domination in bitcoin now so we don't need to worry about that. That's my opinion.

[amishmanish]

China banned all crypto transactions and vowed to root out mining of digital assets, delivering the toughest blow yet to the industry.
--snip--

Toughest Blow my foot.

China throwing out miners is the best thing that can happen for decentralization of mining. The rest of the world is anyways tired of the Chinese copying everything and then claiming technological superiority over the world. The earlier the crypto world is rid of the deceitful and opportunistic Chinese community and government, the better it'd be for the free people of the world who see crypto as an innovation, an opportunity and a revolution in how we transact and manage finances.

Most Chinese community I am aware of are anyways just meme-scammers pumping their bags with bots and shilling. Even if they try to build something, it always has some sort of underlying deceit that is controlled by the Chinese. The upbringing and conditioning within a regime that you cannot question and where you cannot follow the natural human urge of freedom has ensured that most Chinese products are a result of the sole pursuit of money. Lets be done with their hypocrisy, atleast in the crypto world.

[southerngentuk]

China is showing its position in all areas, the recent news has made the market a bit scared. I see that a lot of major exchanges are under a lot of control by the Chinese government.
However, looking back at this FUD, it is not too bad for the market as we also have other good news. So for the developments around news to control the market, I find it mostly panics new investors.

[PastorNick]

But the bad news this time seems to be less powerful than before. Not even below 40,000 this time.

[MaDeidre]

There are many cryptocurrency enthusiasts in China. If China announces a ban on Bitcoin, they will panic and sell their Bitcoin, causing the market to fall. Now the altcoin market is also falling because of the fall in the price of Bitcoin. After experiencing this decline, China's influence on Bitcoin will become smaller and smaller.

[kryptqnick]

I've already seen threads about it on Bitcointalk. I gotta say that Bitcoin is actually doing remarkably well in light of such news. I remember a time when South Korea setting harsh exchange regulations triggered the main drop from $20k to $10k in 2018, and I think news about restrictions of some crypto-related things in China pushed the price down at least 15% in the past a few times. This time we had both things happen within a few days from each other, but Bitcoin is only down 10% over the last 7 days. Maybe the panic selling is still coming a bit later, but if it isn't, it means Bitcoin is way stronger than it used to be.

[zanezane]

It did slump like this in 2016, 2017, 2018, 2019 and 2020, I don't think there's anything new, only newbies panic over this kind of thing because they don't know enough that there's a tug of war between China and bitcoin for a long time.

[palle11]

It did slump like this in 2016, 2017, 2018, 2019 and 2020, I don't think there's anything new, only newbies panic over this kind of thing because they don't know enough that there's a tug of war between China and bitcoin for a long time.

China can only do the best that they can do and like other countries too that have expressed hate in different ways have not succeeded. China in 2017 had a kind of what ban for ico nothing came out from it and bitcoin rose to $64,000, they restricted mining yet bitcoin still going stronger with countries coming to use bitcoin. We can't be surprised if China turns around to promote bitcoin.

[The Sceptical Chymist]

The country is home to a large concentration of the world’s crypto miners and as recently as April had a 46% share of the global hash rate, a measure of computing power used in mining and processing, according to the Cambridge Bitcoin Electricity Consumption Index.

Didn't China ban bitcoin mining or was that law rescinded?  I don't keep up with what China is doing as far as cryptocurrency goes, and I'm not sure that I could even if I tried. 

In any case, the Bloomberg article I read yesterday about this story in this thread said that China's goal in banning its citizens from trading crypto is to reduce the country's carbon emissions or some such thing.  I have a feeling that's not the whole truth, and I don't trust anything the Chinese government says anyway.  Hell, I don't even trust anything my government says, either.

I do think the China news was responsible for bitcoin's dip in the past few days, because there were probably a lot of Chinese traders/investors who sold their coins in anticipation of the law being enacted or enforced.  And even though China accounts for a large number of bitcoin users, I don't think this will be a long-lasting price depression.  Bitcoin has bounced back from worse news before, and it's proven to be resilient over the years.  Buy on the cheap!

[firesurfer]

This news has been around for a long time, and it affects the market as soon as it is announced. The human psyche is unchanged, the collapse has occurred. There were two bans this year, in May and September. I feel compared to the ban in May, the fallout seems to have been softer as people didn't sell off their cryptos like crazy.

[KingsDen]

In any case, the Bloomberg article I read yesterday about this story in this thread said that China's goal in banning its citizens from trading crypto is to reduce the country's carbon emissions or some such thing.  I have a feeling that's not the whole truth, and I don't trust anything the Chinese government says anyway.  Hell, I don't even trust anything my government says, either.

Sir, for how long will China news create headlines and affect the market?
In some cases they use energy consumption to front the blow. Then, can the Bitcoin communities move to renewable source of energy. I just feel like the news, speculations and fight from government are just the factors that keep Bitcoin going. There must be something to create a dip in order to re-start the market. Bitcoin is more than a decade old. It should look for a way to protect herself against her enemies, then it will be taken more seriously. It should not always be at the receiving side.

[nakamura12]

Not long ago it's the miners and now banned all cryptocurrency transactions. I wonder what will be the next the government of china will do. Whatever their reason is I don't think it's just that. There must be something that they are hiding. About the miners in china I think they make mining illegal and whoever is caught mining cryptocurrency then they will face a consequences if I remember correctly.

[cryptomaniac_xxx]

I'm sorry but I didn't see any slump on the prices. The article just overblown the China ban, but who cares, every year they have like banning crypto since it exploded in their country in 2017. Most of the them this mainstream media really likes to make headlines with bitcoin in front and claim this and that. But if you are a crypto enthusiast, you will just laugh it off because you know that the China news now doesn't have significant effect on investors.

[Coyster]

In any case, the Bloomberg article I read yesterday about this story in this thread said that China's goal in banning its citizens from trading crypto is to reduce the country's carbon emissions or some such thing.  I have a feeling that's not the whole truth, and I don't trust anything the Chinese government says anyway.  Hell, I don't even trust anything my government says, either.

Bitcoin is more than a decade old. It should look for a way to protect herself against her enemies, then it will be taken more seriously. It should not always be at the receiving side.

Bitcoin is a decentralized network, it isn't an organization/corporation, neither is it run by a government, thus there is absolutely nothing that can be done about any negative news published about Bitcoin in the media or on social media. Users are their own bank in the Bitcoin network, meaning that they have freedom of their funds and their governments can't control the network, thus they are reluctant to adopt and accept it, reason for all the regulations/sanctions/bans, and there is nothing that can be done about that as well. Governments fabricate things and decides what to make legal or illegal, notwithstanding if it's true or if it is beneficial for their citizens, what comes first for them is their control. But that being said, Bitcoin is by all means a long time project, thus all this are just temporary hiccups that'll mean nothing in the long term.

[hatshepsut93]

The move caused a collapse in crypto prices, with Bitcoin losing about half its value between April and July this year. While the market has since recovered some ground, it’s still far below the all-time high of $63,000.

https://www.aljazeera.com/economy/2021/9/24/bbbitcoin-slumps-as-china-bans-all-cryptocurrency-transactions

Gotta love this "quality" journalism when they take two events that happened in the same timeframe and say the one event caused the other, totally ignoring all the other factors. And Bitcoin is currently at 66% of the ATH price, not 50%, and it even recovered to 5/6 of the ATH price recently.

And just recently Bitcoin only lost $2k as the reaction to China ban, which is really nothing and can be recovered very quickly if the bull market will resume.

[verita1]

No need to worry about China's bitcoin ban. Of course, I understand that we can get angry because sometimes it happens when one least expects it.
The best we can do is keep calm, if we have a diversified portfolio we will not have major problems.

In this position what we do is practice and execute our best trading strategies.

We are fortunate that bitcoin does not get a scratch if we look at it in a funny way.

I would recommend that you consider adding AVAX to your portfolio as it is struggling to rank in the top 10, my view is that it has enormous potential as an altcoin.

https://www.coingecko.com/en/coins/avalanche