China classifies altcoins as illegal and we can clearly see some deterioration on the market. Falling more than $550 in a few hours, yesterday Bitcoin (BTC) had severe deterioration of its price. At the moment after the news Bitcoin (BTC) marked a 6-month low, and fell for $500 more as we are reading in the latest altcoin news.
The president of the People’s Republic of China, Xi Jinping stressed the importance of the country’s involvement with blockchain-based technologies. From then onwards the government of the People’s Republic of China held the narrative “Blockchain, not Bitcoin”, reminding interested parties that cryptos are illegal.
The Head office of the People’s Bank of China (PBOC) in Shanghai, has made a new regulatory update, stating that the POBC will clamp down on crypto trading and will strengthen its regulation and control after China classifies all cryptocurrencies as illegal.
The existing strict regulations would be implemented like in the past by the authorities of the People’s Republic of China, according to the update, and activities related to crypto will be continuously monitored within PBOC’s jurisdiction. Furthermore, any such activities will be “disposed of immediately, and prevented from happening early” as soon as they are identified.
The stance of the authorities in the People’s Republic of China (PRC) is that there are many risks involved in the issuance and trading of cryptos such as asset tempering, business failure, and investment-related speculations. The point is that investors shouldn’t combine blockchain technology and cryptocurrencies, because the policies of the government of the People’s Republic of China (PRC) are treating exceptionally different the two questions.
The moment the news arrived in the markets, Bitcoin’s (BTC) price fell to $7,000, losing $500 more of its dollar value. As it was reported earlier, Bitcoin (BTC) was not traded at these levels since May of 2019, making this a new low for the cryptocurrency. For now, the well-known support line of Bitcoin (BTC) is standing about $7,000 and is holding good, but the situation can be changed in a fraction of a second. The price of Bitcoin (BTC) can fall down to $6,200 because that’s where more demand is found.
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