Bitcoin fell to a two-week low after China announced it had convened banking officials to reaffirm its ban on providing cryptocurrency services.
Bitcoin fell to a two-week low amid a cryptocurrency crackdown in China.
The largest virtual currency is down 10% to $ 32,350 at 8:50 am in New York. Ether decreased 13% to $ 1,950.
China announced Monday that it has convened officials of its largest banks at a meeting to reiterate a ban on providing cryptocurrency services. It is the latest sign that China plans to do everything it can to close all the gaps left in the crypto trade.
Representatives of the Industrial and Commercial Bank of China Ltd., of the Agricultural Bank of China Ltd. and payment service provider Alipay have been reminded of rules banning Chinese banks from participating in cryptocurrency transactions, according to a statement from the central bank on Monday.
“The repression of PBOC goes beyond what was initially anticipated,” said Jonathan Cheesman, head of retail and institutional sales at the FTX crypto derivatives exchange. “Mining was the first phase and speculation is the second phase.”
Separately, a Chinese city with abundant hydroelectric power has intensified action to curb mining. A Ya’an government official told at least one Bitcoin miner that the city has promised to eradicate all Bitcoin and Ether mining operations within a year, said a person familiar with the situation.
Against the backdrop, the appetite for risk assets has declined following last week’s falconry policy by the Federal Reserve. Although stock markets flashed green on Monday, analysts pointed to persistent nerves on the sparkling corners of the market.
“If, as I hope, the global buy of everything continues to continue this week, Bitcoin will feel those chill winds,” said Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte.
“With the help of Li Liu.”