China’s central bank declared all cryptocurrency-related transactions illegal on Friday, sparking one of the strongest selling pressure moves in the digital asset industry.
The People’s Bank of China said in a statement that coins such as Bitcoin and Ethereum are “illegal and should not and cannot be used as currency in the market.” After this news came to the agenda, the crypto money market turned red. Bitcoin recorded an intraday low of $40,936.
In fact, China’s regulatory issues with cryptocurrencies date back to 2013, when Bitcoin was trading around $800. At that time, the country’s central bank banned financial institutions and other payment processors from providing services to cryptocurrency exchanges and traders. As expected, Bitcoin took a big hit after the news made the headlines and prices fell from $1000 levels to $700 levels in a short time. Although it took a long time to recover at that time, Bitcoin managed to reach much higher levels. But in the current situation, there is a more important date that market experts draw attention to: the fall of 2017.
In September 2017, a repeated “ban” announcement by China dealt a blow to Bitcoin, but within weeks it was back to its original levels, reaching an all-time high of $20,000 less than three months later.
Bobby Lee, the founder of China’s first crypto exchange, also drew attention to this point.
“China’s ban on Bitcoin is ALWAYS a great catalyst for an ongoing bull market in BTC. Who remembers China’s September 2017 Bitcoin ban? The ensuing bull market rally was epic! I am very pleased to see that the People’s Bank of China has helped to allow the history of Bitcoin to repeat itself in 2021.”
#China banning #Bitcoin is ALWAYS a great catalyst for a bull market run for $BTC.
Who remembers China’s bitcoin exchange ban in Sep 2017? The bull market rally that followed was EPIC!
So glad to see China #PBOC helping to let Bitcoin history repeat itself again in 2021. 😁😁
— Bobby Lee – Ballet: World’s EASIEST wallet! (@bobbyclee) September 24, 2021
Finally, considering all the negative news from China since 2013, we can emphasize one fact: Bitcoin has continued on its way stronger each time. Despite China’s long history of Bitcoin bans, Bitcoin continues to evolve in terms of both adoption and value.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.