Bitcoin and Other Cryptos Bounce Back After China’s Ban
Sep 27, 2021
Cryptocurrency prices were rebounding following declarations from China last week that all crypto-related transactions were illegal and must be banned.
Bitcoin, the world's most valuable cryptocurrency, was up 1.3 percent to $43,663 on Monday, while Ethereum, the second most valuable, was up 4.05 percent to $3,088. Other coins, like XRP and Dogecoin, bounced back as well.
The People's Bank of China declared "virtual currency derivative transactions" illegal and "strictly prohibited" on Friday, sending crypto values soaring.
Several government departments signed a statement earlier this month laying out a rigorous new regime, reaffirming a mining prohibition, threatening stiff fines for crypto trading and financial transactions, and promising to "severely crack down on illegal activity involving virtual currencies."
The prohibition covers all digital tokens, which China claims are illegal and cannot be used as a medium of exchange. Online crypto services given by overseas virtual currency exchanges to Chinese individuals were likewise regarded as illicit financial activity.
Meanwhile, Huobi and Binance, two of the world's largest bitcoin exchanges, have halted new registrations for Chinese consumers as a result of China's crypto prohibition.
Mainland China mobile numbers are no longer accepted by Huobi and Binance, although fresh sign-ups are still allowed for Hong Kong consumers.
Huobi Technology (ticker: 1611:HK) had its stock plummet by more than 21% on Monday. MicroStrategy (MSTR) was up 1.6 percent in premarket trading Monday, after falling Friday along with other crypto-related U.S. equities.
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To gauge the magnitude of the losses (despite the fact that by early Saturday the price of the main bitcoin had risen slightly to above $48,000, from a low of $45,000), recall that BTC was worth $57,000 on Friday.
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