Out of range of cryptocurrencies. Why China is no longer a threat to Bitcoin

Experts told whether the authorities of the Celestial Empire will further tighten control over digital assets, and how this may affect their quotes The cryptocurrency market remains fragile after new bans in China. On the …

Experts told whether the authorities of the Celestial Empire will further tighten control over digital assets, and how this may affect their quotes

The cryptocurrency market remains fragile after new bans in China. On the night of September 30, the bitcoin rate fell below $ 41 thousand.Then it again approached the $ 44 thousand mark.As of 19:55 Moscow time, the main digital coin is trading at $ 42.9 thousand, over the past day it has risen in price by 2% …

The situation in China continues to get complicated. It became known that one of the largest manufacturers of mining equipment, Bitmain, will stop selling miners in China, as well as move production to other countries due to restrictions imposed by the Chinese authorities.

Last week, the People's Bank of China imposed a complete ban on crypto transactions. The use of digital assets in the country is now tantamount to illegal financial activity. After this announcement, the bitcoin rate fell by $ 3 thousand per hour. The services that crypto exchanges provide to the residents of China also turned out to be outlawed.

Against the backdrop of statements from the country's authorities, the Chinese online commerce giant Alibaba announced the termination of sales of equipment for mining cryptocurrencies from October 8. And the crypto exchange Huobi Global announced that from September 24 it stopped registering new users from China, existing accounts will be disabled until December 31. At the same time, the authorities added the most popular cryptocurrency-related sites CoinGecko and Coinmarketcap to the blocklist.

On the one hand, the actions of the Chinese authorities exert negative pressure on the entire crypto market, and on the other, everyone is beginning to get used to the fact that China is outside the zone of action of cryptocurrencies, said Artem Deev, head of the analytical department at AMarkets. According to him, the current news about the bans in the country no longer has a particular impact on cryptocurrency quotes, although earlier they could have been greatly underestimated.

“The PRC will continue to close all opportunities for investors in crypto assets and the activities of any companies that are associated with the market. But the influence on the rate from such news is already clearly less. And therefore, over time, the market will stop responding to such events in the PRC, which simply becomes a territory completely cleared of cryptocurrencies, "Deev explained.

The harsh actions of the Chinese authorities in relation to the crypto market began at the end of May. Then Vice Premier of the State Council of the People's Republic of China Liu He called for stricter regulation of mining and crypto trading. After that, the authorities of local provinces began to prohibit the mining of cryptocurrency, and businesses to leave the country. Against this background, the price of bitcoin per day fell by a third, to $ 30 thousand.

Now the market is reacting to the existing news background weaker than it could, added Vitaly Kirpichev, Development Director of TradingView in Russia. He recalled that after the Chinese ban on ICOs in 2017, there were several months of growth and renewal of a historical high, when the price of bitcoin first reached $ 20,000 in December.

In China, an unambiguous ban on transactions related to cryptocurrencies will be followed by applied measures of this ban, Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service, is sure. According to him, in the near future we should expect reports of blocking of accounts, closings of offices of companies related to cryptocurrencies, and investigative measures.

“Most likely, repressive measures will begin against GPU miners who secretly mine altcoins. They will be hunted down, their equipment will be taken away and done as publicly as possible for the edification of others, ”the expert added.

Strong fluctuations in the crypto market are unlikely to provoke this news, Soshnikov believes, since China's potential in the crypto market is no longer what it used to be.

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