{"id":3587,"date":"2021-05-19T05:26:28","date_gmt":"2021-05-19T04:26:28","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=3587"},"modified":"2021-05-19T05:26:33","modified_gmt":"2021-05-19T04:26:33","slug":"bitcoins-obstacles-mount-amid-china-cryptocurrency-warning","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bitcoins-obstacles-mount-amid-china-cryptocurrency-warning\/","title":{"rendered":"Bitcoin\u2019s Obstacles Mount Amid China Cryptocurrency Warning"},"content":{"rendered":"\n
Bitcoin<\/a> and other major cryptocurrencies slumped after the People\u2019s Bank of China conveyed a statement reiterating that digital tokens can\u2019t be used as a form of payment.<\/h5>\n\n\n\n
\"Bitcoin\u2019s<\/figure>\n\n\n\n

The largest token fell as much as 7.3% to $40,139 in Asia on Wednesday, continuing a weeklong slide sparked by Elon Musk\u2019s back-and-forth comments on Tesla Inc.\u2019s holdings of the coin. Ether, Dogecoin, and last week\u2019s sensation, Internet Computer, also retreated.<\/p>\n\n\n\n

\u201cThis is the latest chapter of China tightening the noose around crypto,\u201d said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.<\/p>\n\n\n\n

Virtual currencies\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> should not and cannot be used in the market because they\u2019re not real currencies, according to a notice posted on the PBOC\u2019s official WeChat account. Financial and payment institutions are not allowed to price products or services with virtual currency, the notice said.<\/p>\n\n\n\n

The statement doesn\u2019t have any new regulatory steps, according to Yu Lingqu, a vice director at the China Development Institute think-tank in Shenzhen. The notice was conveyed by the central bank but compiled by industry associations rather than government officials, making it less powerful, according to Liu Yang, a lawyer at Beijing-based law firm DeHeng Law Offices.<\/p>\n\n\n\n

\u201cThey just want caution,\u201d said Bobby Lee, founder and chief executive officer of crypto storage provider Ballet. \u201cThey feel the market is over-hyped, there\u2019s speculative trading, they\u2019re looking out for the best interests of the people.\u201d<\/p>\n\n\n\n

Beijing since 2017 has abolished initial coin offerings and clamped down on virtual currency trading within its borders, forcing many exchanges overseas. The country was once home to about 90% of trades but the lion\u2019s share of mining and major players have since fled abroad.<\/p>\n\n\n\n

China has recently taken steps to issue its own digital yuan, seeking to replace cash and maintain control over a payments landscape that has become increasingly dominated by technology companies not regulated like banks.<\/p>\n\n\n\n

\u201cIt\u2019s no surprise to me, as Chinese capital controls can be challenged by cryptocurrency purchases in the country and transfers out of the country,\u201d said Adam Reynolds, CEO for APAC at Saxo Markets. \u201cSo avoiding use of them in the country is essential to maintaining capital controls. The only tolerable digital currency to a government with strong capital controls is their own CBDC.\u201d<\/p>\n\n\n\n

Many chartists and technical analysts are looking at Bitcoin\u2019s 14-day Relative Strength Index (RSI), which entered oversold levels Tuesday. In addition, an acceleration in its selloff could mean the coin approaches its next support around $40,000. A fall to that level would mark the first time since September that Bitcoin would test its average price over the past 200 days. And breaching it could mean it drops to $30,000, where it\u2019s previously found support.<\/p>\n\n\n\n

For Stephane Ouellette, chief executive and co-founder of FRNT Financial, the moves have more to do with Musk\u2019s recent tweets about Bitcoin.<\/p>\n\n\n\n

\u201cIt\u2019s just a bit of a mess. TSLA\u2019s entrance into the space saw some of the most aggressive BTC buying I\u2019ve personally ever seen — and it has to unwind,\u201d he said. The EV-maker\u2019s retraction that it will accept Bitcoin as payment \u201cwas the catalyst that accelerated the spread consolidation. Then over the weekend, little comments here and there have continued to confuse.\u201d<\/p>\n\n\n\n

Meanwhile, the latest Bank of America fund manager survey showed that \u201cLong Bitcoin\u201d is the most crowded trade in the world right now. The poll captures 194 fund managers with $592 billion worth of AUM overall.<\/p>\n\n\n\n

\u201cThe fact that the BofA manager survey shows that the \u2018long Bitcoin\u2019 trade is the most crowded one on the Street right now isn\u2019t helping either,\u201d said Matt Maley, chief market strategist for Miller Tabak + Co. \u201cWhen an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past. When you combine this with the news out of China, it\u2019s not a surprise that Bitcoin is seeing some more weakness.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin and other major cryptocurrencies slumped after the People\u2019s Bank of China conveyed a statement reiterating that digital tokens can\u2019t be used as a form of payment. The largest token fell as much as 7.3% to $40,139 in Asia on Wednesday, continuing a weeklong slide sparked by Elon Musk\u2019s back-and-forth comments on Tesla Inc.\u2019s holdings […]<\/p>\n","protected":false},"author":63,"featured_media":3588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83],"tags":[152],"class_list":["post-3587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/05\/a03df649b3b0cfbd9c49d541796be5a9.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=3587"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/3588"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=3587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=3587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=3587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}