China’s actions are escalating, and all cryptocurrency transactions are illegal

There are further reports from China of a negative attitude towards cryptocurrencies with the new update of the national central bank. The People’s Bank of China (PBoC) has released a document recalling that digital assets are banned in the country and has banned all cryptocurrency transactions. BTC, Eterereum, Tether and other major coins are prohibited from moving on the market. As a result, BTC fell $ 4,000 an hour.

China’s negative attitude towards cryptocurrencies has provoked another FUD

China’s negative attitude towards the cryptocurrency sector has been well known for years and the nation often reminds investors of it.
On Friday, the central bank warned once again about the illegal state of digital assets. The statement also states that financial organizations, payment companies and Internet platforms are prohibited from facilitating the trade in cryptocurrencies.

The Bank has promised to improve the monitoring of all operations related to the digital assets sector and stresses that it is illegal for foreign exchanges to provide services to Chinese residents. In its reasoning, the PBoC argued that the measures were intended to protect investors from the highly corrupt nature of cryptocurrencies, which the bank said led to crime.

All digital currency business is now considered illegal in China. However, China has not gone so far as to ban the ownership of cryptocurrencies. It is worth noting that today’s specific statement was issued earlier this month. As popular commentators on Twitter have pointed out, it was published a few weeks ago, but it did not reach the Internet until September 24.

Nevertheless, this led to a massive decline in the cryptocurrency market. BTC had just tested $ 45,000 before a sudden price slip sent him $ 4,000 lower. The Altcoins are even worse as the ETH has dropped to $ 2,800. Overall, the cryptocurrency market fell by about $ 150 billion in an hour.

In one day, positions worth more than $ 400 million were liquidated

The market suddenly blushed and in less than a day saw the liquidation of long and short positions worth more than $ 400 million.

Although much of this is new, the market reacted negatively and a while later the price of BTC fell below $ 41,000. There has been a huge number of liquidated positions, most of which are, of course, longs. Company data Bybt show that the lengths were almost 70%.

The largest one-time liquidation order took place on OKEx – it was a BTC order with a nominal value of almost $ 7 million. Most of the liquidations took place in Binance, which represents about 33% of the total.