The sensitivity of Bitcoin and cryptocurrencies in general to the news has increased dramatically in recent times.
After several negative news passed on Bitcoin, from Tesla announcing it would stop paying Bitcoin to Chinese authorities announcing that they would ban Bitcoin payments, new Chinese news appeared hours ago.
Although the Chinese ban on trading cryptocurrencies is not new, the repetition and confirmation, especially since this time the warning was issued by the State Council of China, which announced a ban on mining and trading Bitcoin.
Bitcoin is affected and its price drops to less than $ 37,000 (back over $ 37,000 at the time of publication)
And as we were told, it appears that the Chinese authorities are ramping up their iterations of the previous crackdown on cryptocurrencies.
State Council of China Bitcoin Warning:
According to the report issued today:
The Financial Stability and Development Committee of the State Council of China held a meeting, noting the necessity to strictly implement some decisions towards the financial system, and to embody these decisions issued by the Central Committee of the Party and the State Council, in order to support the real economy, improve credit policies and make them accurately adapt to the needs of market entities, etc. .
The report also states that the meeting had a purpose aimed at preventing and controlling financial risks.
The phrase banning bitcoin mining and trading is also repeated in the report.
According to the “Wu Blockchain” Twitter account:
This is the first time that the highest level in the Chinese government has clearly proposed a blow to the mining industry.
The news had a direct impact on the bitcoin price, which fell to an intraday low of $ 36,600, losing nearly $ 5,000 in one candle per hour.
It should be noted that this is the second time this week that China is bringing back and recalling the old regulations, which directly affects the bitcoin price.
The price of Bitcoin, and with it most of the alternative digital currencies, was affected, as the total market value decreased by 8%, reaching at the time of writing this article, the level of $ 1.61 trillion.