It appears that China has banned Bitcoin again.
China has banned banks and payment providers from facilitating all digital currency transactions in its latest attempt to crack down on cryptocurrencies. Last week, the Chinese government implemented an operation to close down all Bitcoin mining operations in the Sichuan province, a popular location due to the proliferation of cheap coal-powered energy.
China was responsible for 65% of global Bitcoin mining last year, and the Sichuan province was the second-largest producer of Bitcoin in the world. Following the latest regulatory moves by China, the price of Bitcoin fell by more than 10%. Since it hit a record level of $63,000 in April, Bitcoin has plummeted in price by almost 50%, coming under attack from various quarters.
The news in China saw its Central Bank, the People’s Bank of China, confirm recent action taken against several major banks and payment providers, effectively stopping them from allowing trading of cryptocurrencies. Banks in China have been instructed to stop providing products or services, including trading, clearing, and settling cryptocurrency transactions.
In response to the news, various Chinese banks confirmed their compliance with the new rules. Some Bitcoin analysts have raised concerns about the prospect of further losses, as the charts show a formation called a ‘death cross’. This death cross pattern appears on charts when the short-term average trendline crosses below the long-term average trendline, and further losses can follow it.
Today Bitcoin fell below a significant support level of $30,000. Other cryptocurrencies followed Bitcoin’s lead and lost value, too, with Ethereum falling in price