Aside from the Fed, yet another economy is exercising its influence on cryptocurrency markets again. This time in a more direct manner, however. The Agricultural Bank of China, the nation’s third most prominent financial institution has explicitly announced in a notice that its services are not allowed to be used for crypto-related transactions.
8btc, a China-based news resource, translating the original document to English for its English-speaking audience, reported that the Agricultural Bank of China has released a statement announcing that it will not be participating in digital currency transactions and its other related activities.
The bank stated that client accounts indulging in such activities will not only be closed but customer relationships will also be ended immediately. The aftermath of this statement was immediately discernible as Bitcoin fell by over 1K USD in a matter of minutes before bouncing back to 33K USD.
While such reactions to crypto are not as shocking, people are losing their patience over the spontaneous reactions to China. The most recent episode proved to be a prime example. Although the bank had resorted to deleting the statement shortly after publishing it, the damage had already been done and was irreversible.
Generally, not much has changed the Chinese government’s stance on Bitcoin on a fundamental level since its debatable crypto trade ban took effect on the 17th of September.
According to CEO of asset managing firm Capriole, Charles Edwards, China has shut down half of its Bitcoin network. Edwards observed in a thread of tweets on the crypto mining clampdown that had been responsible for the previous Chinese prices pressure.
On the other hand, others stated that Bitcoin has been able to gain new opportunities due to the penal measures from both financial institutions and administration. They believe that mining will relocate to other destinations, and the network will be able to thrive from utilizing more reliable, welcoming territories.
Trade the Day
June 23, 2021 at 10:40 pm
Interesting, could be huge.