Bitcoin (BTC) shed $1,000 in minutes on Monday as fresh news from China succeeded in routing bulls yet again.
Third-biggest Chinese bank warns on crypto
The cause, which disturbed a day of recovery from another dip, appeared to once again come from China via a major bank statement that confirmed it would not allow the use of its services for transactions related to Bitcoin or cryptocurrency.
Involved was China’s third-largest bank, the Agricultural Bank of China.
“The statement emphasized that once relevant behaviors are discovered, account transactions will be immediately suspended, customer relationships will be terminated, and relevant departments will be reported,” journalist Colin Wu reported on Twitter.
The resulting volatility, while unnerving, matches behavior from previous announcements by China. The country has become the source of headaches for Bitcoin bulls in recent weeks as miners face a crackdown and officials reiterate the existing restrictions on cryptocurrency in place since 2017.
Ah more China FUD.— Paolo Ardoino (@paoloardoino) June 21, 2021
Glad we are consistent.
As Cointelegraph reported, however, many argue that the price pressure is a typical overreaction and that, ultimately, Bitcoin will benefit from a move away from Chinese reliance.
Interestingly, reports that the announcement by the Agricultural Bank of China has since been deleted are now beginning to surface.
“The Bitcoin network has just experienced the biggest attack in its history,” Charles Edwards, CEO of asset manager Capriole, said on Sunday.
“The worst case scenario for a China mining ban has now played out.”