Bitcoin prices fell 5% today following the “breaking” (read: week old) news that the People’s Bank of China or PBOC has declared all cryptocurrency transactions illegal.
With that in mind, let’s take a nostalgic look at the last 12 years of FUD from China and see if we can see any patterns.
China banned ‘virtual currency’ for the first time in 200 virtual
1: Chinese regulators have never been supporters of crypto. When blockchain-based digital currencies were in their infancy, in 2009, China’s Ministry of Culture and Ministry of Commerce banned the use of “virtual currencies” for real-world product transactions. Although not specifically targeted at Bitcoin (BTC), the move marks a decade of seemingly anti-crypto rules.
The first bitcoin-specific ban hit in 2013
2: In 2013, the PBOC barred Chinese financial institutions from conducting BTC transactions and called crypto a currency without “real money”. The news caused BTC to fall below $ 1,000 at a time when BTC China, or BTCC, was the largest crypto exchange in terms of volume.
The asset returns to form within a few weeks.
The threat of bogus sanctions plagued 2014
2014 has taught us that fake reports from PBoC regulators are sometimes as effective as real ones.
3: In March, a fake report published on the Sina Webo website claimed that China’s central bank planned to stop bitcoin transactions in the country in less than a month. Although the report proved meaningless, it did not stop the price of Bitcoin from cascading.
4: At roughly the same time, the China-based crypto exchange FXBTC said it would close its doors in banning the exchange amid threats from regulators. A combination of both events could be responsible for Bitcoin’s decline from $ 709 to $ 346.
Admittedly bloody though, the price started recovering briefly and returned above $ 600 at the end of May.
In 201 Chinese, a Chinese exchange hack briefly lowered the price
5: Although not directly controlled by China, the main Hong Kong-based crypto exchange, Bitfinex, suffered its biggest hack in August 2011. Still being tracked today. At the time, news of the big exchange hack was believed to have reduced the price of BTC by more than 10% in two days.
But by September, prices have returned to their pre-hack levels.
In 2017, China lifted crypto-related sanctions twice a month
6 and 7: In September, the Chinese government formally banned exchanges from providing services to users within the country, and the PBOC announced that Chinese citizens would not be allowed to finance the initial currency offer.
It took three months to move Bitcoin from 4 4,000 to an all-time high of about 20,000.
8 and 9: The cryptocurrency was heading for its biggest bullfight when the BTCC said it was closing in on the government’s “ban” (it is still in place), and the PBOC deputy governor is claiming that the “body of bitcoin” will one day float in the river.
Crypto was already on the way to recovery by this point, and only experienced minor dips.
Media reports led to a small crypto crisis of faith in 2018
10: In January 2018, reports circulated that Chinese nationals could cause major cryptocurrency prices to plummet.
11: Although many argued that the collapse was due to Chinese media reports, which claimed that the country was cracking down on crypto mining. In mid-February, the price of Bitcoin fell more than 65% to $ 6,852.
Although it did not last long; At the end of the month the price was over 11 11,000.
FUD spread in 201 F.
12: According to a draft by China’s National Development and Reform Commission, the price of bitcoin fell slightly in April 2011, with government agencies reportedly considering banning mining in the country … again.
13: PBoC followed this step with the announcement that tcrypto trading would be “disposed of immediately”.
Despite a brief price return, fresh all-time highs will soon be on the horizon.
Allegedly, China was behind the ‘crypto bloodbath’ of 2020
14: The March 2020 “Crypto Bloodbath”, which saw the price of almost all major tokens cut at the start of the Kovid-1 pandemic epidemic, was believed to have been caused by Chinese miners liquidating their holdings.
Related: Bitcoin price ‘steady’ drops to $ 32.5K in new China FUD
15: The Hong Kong government has announced plans to ban retail crypto trading in November 2020 as part of efforts to stop money laundering.
Covid’s first year ended Bitcoin broke the 20,000 barrier for the first time in three years, reaching an all-time high of ,000 30,000 before the end of 2020.
FUD comes in the present day
16: The National Internet Finance Association of China, the China Banking Association and the China Payments and Clearing Association issued a warning in May 2021 against investing in cryptocurrencies due to potential risks.
17: The following month, PBoC instructed Chinese banks and mobile payment service providers that they would not provide banking and settlement services to customers engaged in crypto-related transactions.
18: Then in June, officials imposed a genuine mining ban, allowing miners from the country to still have mass transportation.
19: This brings us to today, when PBoC once again declared that all cryptocurrency transactions in China are illegal.
China FUD failed to kill crypto Total number: 19
Including today’s message from the PBOC, 11 messages came directly from Chinese and Hong Kong regulators ordering a ban on crypto, exchange or mining, 8 major incidents of fake news or media coverage outside China otherwise affecting the crypto market, and a handful of others. Events – such as hacks and the country’s crypto business decisions – that have sunk. In all, since 2009, China has “banned” or otherwise FUD in crypto space on more than one separate occasion.
Data from Cointelegraph Markets Pro shows that the price of Bitcoin has fallen more than 5% in the last 24 hours, but is currently back above $ 43,000 at the time of publication.
Jeffrey Albus contributed to the research and editorial content of this story.