The Bitcoin bulls had a difficult start to the week, with the price of the cryptocurrency falling from $ 48,000 to around $ 43,000 in a matter of hours on Monday. The scenario only got worse over the next two days as BTC fell another few thousand dollars.
As a result, it hit a low of $ 39,600 on Wednesday, its lowest level since August 6th. At that moment, however, the pattern began to shift again. Bitcoin quickly rebounded, recapturing $ 40,000 before climbing further to the $ 44,000 level. The market turned unexpectedly red today as what appears to be a new wave of regulatory attempts in China to crack down on cryptocurrencies.
China and Bitcoin
China’s efforts to crack down on the entire Bitcoin economy continue. The People’s Bank of China (PBoC) has issued a document warning people that digital assets are illegal in China and that using exchanges is illegal too.
As a result, BTC lost $ 3,000 in less than an hour. It didn’t end up with the price dropping below $ 41,000 before rising to around $ 41,400. This resulted in a large number of liquidated positions, most of which are long positions.
If you’ve seen a Chinese regulatory fud again, that announcement was made on September 3rd. Don’t fall for it https://t.co/KFghcCiqN4 pic.twitter.com/ZUPHPCVASp
– Molly (@bigmagicdao) September 24, 2021
On Friday, the central bank once again underlined the illegality of digital assets. Financial institutions, payment companies and internet platforms are also prohibited from supporting crypto trading, according to the statement.
The bank announced it would improve the monitoring of all digital asset transactions. In addition, China’s central bank has stepped up its anti-mining campaign launched in May.
BTC currently stands at $ 42,223.93, up 4.33%. At the time of writing, the market cap of the coin is $ 793,025,895,993 with a 24 hour volume of $ 40,966,611,283.
More than $ 418 million in long and short positions were deleted from the market, with long positions accounting for approximately 70% of the total. At OKEx, the largest single liquidation order was a BTC order with a face value of nearly $ 7 million. Binance was the location of the majority of the liquidations, which made up about 33% of the total volume.