News of the Chinese government, banning bitcoin is not a new event. China has stated its stand against the digital gold more than once and a little too often. Most of the time, the market react with FUD; causing the prices of various cryptos to retrace.
This time is no different as we see that bitcoin along with most cryptocurrencies suffered a price setback.
In the latest China ban on Bitcoin, ten agencies, including the central bank as well as banking, securities and foreign exchange regulators, vowed to work together to root out “illegal” cryptocurrency activity.
Although this is first time Beijing-based agencies have joined forces to ban all cryptocurrency-related activity, the news js no surprise as in 2013, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions.
BTC has shown a lot of resilience at $40k as it has held on to this support after two attacks in the last seven days.
Bitcoin is trading above $42,000 as it is recovering from the previous correction it faced. We may see a return to $45,000 in the next 48 hours if current conditions remain the same.