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BTC/USD loses $1,000 almost quickly as China’s third-largest bank throws the cat among the birds in early trade.
Bitcoin (BTC) lost $1,000 in minutes on June 21 as fresh news from China successfully routed bulls once more.
3rd biggest Chinese bank warns on crypto
Data from TradingView showed BTC/USD hitting local lows beneath $32,500 on Monday.
The cause, which disturbed a day of recovery from another dip, appeared to once again come from China via a major bank statement that confirmed it would not allow the use of its services for transactions related to Bitcoin or cryptocurrency.
Involved was China’s third largest bank, the Agricultural Bank of China.
“The statement emphasized that once relevant behaviors are discovered, account transactions will be immediately suspended, customer relationships will be terminated, and relevant departments will be reported,” journalist Colin Wu reported on Twitter.
While unsettling, the resultant volatility is consistent with China’s past pronouncements. In recent weeks, the country has become a cause of concern for Bitcoin bulls, as miners have been targeted and officials have reiterated the country’s current cryptocurrency regulations, which have been in place since 2017.
Ah more China FUD.
Glad we are consistent.
— Paolo Ardoino (@paoloardoino) June 21, 2021
As previously said, many believe that the price pressure is a typical overreaction and that, in the long term, Bitcoin will benefit from a transition away from Chinese reliance.
Surprisingly, rumours are circulating that the Agricultural Bank of China’s statement has now been withdrawn.
— 8BTCnews (@btcinchina) June 21, 2021
“The Bitcoin network has just experienced the biggest attack in its history,” Charles Edwards, CEO of asset manager Capriole, said on Sunday.
“The worst case scenario for a China mining ban has now played out.”