The crypto news has just reached us that Bitcoin has dropped to a two-week low after China said that bank executives had been called to restate the country’s ban on cryptocurrency services.
Bitcoin hit a two-week low as China tightens its grip on cryptocurrencies.As of 8:50 a.m. in New York, the largest virtual currency had dropped 10% to $32,350. Ether has dropped 13% to $1,950.
Currently about 55% of the bitcoin hash rate is generated in China, down about 10% since june 2020, and from 90% in 2014. Maybe one driver of renewable energy inUS will be off grid power straight into mining data centres. pic.twitter.com/phkDJhcVmA
— Ian Patterson (@ianpatterson99) May 19, 2021
According to crypto news, on Monday, China stated that it had invited officials from the country’s largest banks to a conference to reinforce a prohibition on cryptocurrency services. It’s the latest indication that China is prepared to go to any length to eliminate any remaining crypto trade loopholes.
According to a statement released by the central bank on Monday, representatives from the Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd., and payment service provider Alipay were reminded of rules prohibiting Chinese banks from engaging in crypto-related activities.
According to Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX, the PBOC crackdown is going further than predicted. “Mining was the first step, and speculation is the second.
Separately, a Chinese city with plenty of electricity has increased its efforts to curb mining. According to a source familiar with the matter, a Ya’an government official told at least one Bitcoin miner that the city has committed to eradicate all Bitcoin and Ether mining operations within a year.
Against this environment, risk appetite has dropped following the Federal Reserve’s aggressive policy shift last week. Despite the fact that equities markets ended the week in the green, economists said there were still concerns about frothy areas of the market.
Bitcoin will feel the icy winds if the global buy-everything unwind continues this week, as I think, said Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte.
Bitcoin crashed with China warning about virtual currencies
According to Bloomberg, the value of bitcoin and other virtual currencies fell following the statement of the People’s Bank of China not to use virtual currencies as a method of payment.
The crypto news was announced about a month ago, and the value of Bitcoin, the world’s largest virtual currency in terms of market capitalization, fell 7.3 percent in Asia to $ 40,139.
Elon Musk’s contradictory comments about Tesla’s bitcoin assets have already devalued the virtual currency.Ether, Dodge Quinn and PC Internet have also fallen in price.
According to an official statement from the People’s Bank of China, virtual currencies cannot be used in the market because they are not real currencies and financial and payment institutions are not allowed to price their products and services with virtual currencies.
According to Liu Yang, a lawyer at Dihang Law Firm, the statement from the People’s Bank of China was made by industrial enterprises, not government officials, so it has little power.
Cryptocurrencies restrictions in China from 2017
Beijing has banned trading in virtual currencies within its borders since 2017. It once accounted for 90 percent of such businesses, but a large share of virtual currency extraction has since moved abroad.China has recently taken steps to launch digital yuan, which is set to replace cash and take control of payments currently held by technology companies rather than state-owned banks.
Many analysts believe that accelerating the sale of bitcoin means approaching the $ 40,000 price range.This is the first time that Bitcoin has reached this price range since September last year.Cryptonews has reached that Breaking this range and going down, the next level of bitcoin price is 30 thousand dollars.