There is a lot of social unrest over the recent “China banning Bitcoin” news. People who have been in crypto for more than two years will know this is almost a yearly occurrence. Interestingly, every time China wants to ban Bitcoin, the BTC price tends to skyrocket.
Why China Wants to Ban Bitcoin Again
There have been numerous incidents since 2013 where Chinese officials have tried to discredit the cryptocurrency industry. However, those efforts have ramped up significantly since 2018m as it is the fifth time China wants to ban Bitcoin since May 2018. That is remarkable, considering the country could have been done with cryptocurrency on that day, yet they seem to rekindle the topic every few months.
As this is the fifth time in 3.5 years that China wants to ban Bitcoin, it is crucial to see the news in the correct spotlight. The Chinese government wants nothing to do with cryptocurrencies, which has been known since 2017. Moreover, the crypto miners have left the country in recent months and have successfully set up operations elsewhere. Therefore, China plays no role of importance in cryptocurrency whatsoever.
— $ BLOCK HEAD (@slapmylovespuds) September 24, 2021
At this rate, it is plausible another such “announcement” will be made in mid-2022. Every time this happens, the crypto markets collapse briefly before rebounding stronger. This level of market manipulation must be seen for what it is. Influential people want to suppress crypto prices for financial benefit. There is nothing more to these stories, as that is seemingly the only real objective.
In the recent chapter on how China wants to ban Bitcoin, the government clarifies that all crypto transactions are illegal. Of course, they have been for several years now, so there is nothing new there. However, the inclusion of off-shore exchanges is a curious change, although it will not make much difference. Additionally, the government wants to get rid of any illicit crypto miners in the country. Again, no real change there, as crypto mining was outlawed during the previous ban on Bitcoin.
Market Panic Will Likely Be Short Lived
Historically, any story involving how China wants to ban Bitcoin has been bullish for the world’s leading cryptocurrency. Its price has skyrocketed every time, and the yearly performance of BTC puts all other markets to shame. It doesn’t matter what China wants to do about crypto activity, as it is not something they can control, except for centralized service providers. Anyone can work with cryptocurrencies without intermediaries, even if doing so requires a bit more work.
— Gabor Gurbacs (@gaborgurbacs) September 24, 2021
It seems plausible the Bitcoin price will see some bearish pressure before resuming its uptrend again. News like this always spooks novice investors and speculators with little or no historical context on the China-Bitcoin relationship. News regarding how China wants to ban Bitcoin is a yearly event at this point. The frequency at which these announcements occur seems to be picking up speed, though.
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