March 29, 2024

China has banned cryptocurrency businesses in the country. What will happen to Bitcoin?

China has banned financial institutions and payment companies from providing services related tocryptocurrency transactions.

</p>

Three associations under the People's Bank of China released a joint statement on Tuesday evening, reports Reuters.

“Cryptocurrency prices have skyrocketed recentlyand fell sharply, and speculative cryptocurrency trading recovered, seriously disrupting the security of people's property and disrupting the normal economic and financial order. "

Financial institutions in China are not eligibleprovide services for the storage and management of cryptocurrency, as well as release products related to digital assets, the statement said. In addition, the document emphasizes that cryptocurrencies are "not supported by real value", their prices are easy to manipulate, and trading is not protected by Chinese law.

Since September 2017, China has a stricta ban on initial coin offerings (ICOs) and fiat currency transactions on crypto exchanges. Cryptocurrencies are equated to digital goods, which prohibits their use as a payment instrument. Thus, there is a complete ban on trading and operations with cryptocurrencies, while China remains the world center for Bitcoin mining.

Against the background of the news about the ban on cryptocurrency business in China, the bitcoin rate fell by almost 8% - to $ 42,422, according to the largest cryptocurrency exchange Binance.

Analyst Michael van de Poppe released an operational review in which he allowed the main cryptocurrency to briefly fall to $38,000. He wrote:

“We're likely to get one last deep wick into the support area between $ 38,000-41,000, pushing retail traders out of the market. After that, bitcoin reversal. "

1-HOUR BITCOIN CHART. MICHAEL VAN DE POPPE FORECAST

</p></p>