Chinese FUD has failed to destroy Bitcoin in the past 12 years
Digital currencies have been healed after China's FUD more than 10 times during the past 12 years. Let's take a look at how crypto assets and their communities have managed to stay optimistic and not succumb to market panic.
For the first time, the use of cryptocurrencies was banned by the Chinese authorities back in 2009. Instead of becoming supporters of this technology, the Chinese government decided to start blocking a new asset class before the industry even had time to gain traction. Then a ban was submitted by the Chinese Ministry of Commerce on the use of digital currencies to trade real goods. This action was not aimed solely at Bitcoin, but it is sure to be the reason for the industry's attention.
In 2013, the People's Bank of China (PBoC) also began to prohibit digital currencies, calling them a “currency of no real significance”. Then the news contributed to the fall of Bitcoin below the level of $1,000. At that time country has the largest crypto exchange in terms of trading volume - BTC China, also known as BTCC.
In 2014, regulators at the People's Bank of China said in a report that the country's central bank intended to prevent all Bitcoin transactions in less than a month. The only problem is that the report was in fact a fake published on Sina Weibo. Although to admit, the effectiveness and its consequences were reflected in Bitcoin, which took the words “to heart”, and from the fall of its rate, it almost stopped at the BTC-holders.
In parallel, the Chinese crypto exchange FXBTC declared its closing, citing the receipt of threats to ban the exchange of digital currencies from the PRC regulators. As a result, the Bitcoin price collapsed by half from above $700 to $345. Although from March 2014 to May of the same year, the price nevertheless recovered to over $600.
In 2016, the reason for the drop in quotations was the hacking of the local exchange Bitfinex. Criminals managed to steal about 119,756 Bitcoins from the exchange, which today is equivalent to more than $5 billion. The movements of some of these vehicles are still being monitored. The value of the main asset also reacted to the incident, falling by 10% in just a few days. Although this time, the price was soon able to recover to its previous level.
2017 was marked not only by the ICO boom but also by the bad mood of the Chinese financial regulators. In September of this year, the authorities halted crypto exchanges from serving customers in the country. PBoC representatives also informed Chinese citizens about the ban on ICO funding. Nevertheless, Bitcoin quickly burst from $4,000 to a record $20,000 at that time.
As Bitcoin approached one of the best bull rallies in just three months, BTCC announced it was closed due to pressure from authorities, and a PBoC official backed up threats that crypto enthusiasts would wait for “Bitcoin's body to float down the river”.
January 2018 turned out to be turbulent. Then the world media began to actively disseminate information that the citizens of China caused a collapse in the prices of the main currencies of the crypto market. Many argued that it was the Chinese publications that became the epicenter of the news, reporting on the upcoming harsh measures against the mining of digital currencies. By mid-February 2018, BTC fell by 65%, reaching the bottom at around $6,852. Fortunately, the panic did not last long and by the end of the month, prices had risen to over $11,000.
In April 2019, the price of the main cryptocurrency on the market fell again due to reconsideration of the issue of banning the production of a new asset class in the PRC. It's funny to talk about this in the past tense with an eye to what is happening with mining in the Celestial Empire today. At the same time, the People's Bank of China decided to intimidate traders by announcing the possible "liquidation of crypto trading."
By March 2020, the world was shaken not only by the pandemic but also by the carnage in the digital currency market. All major coins of the market have dropped significantly in value. The reason for this, according to experts, was the massive sale of assets by Chinese crypto miners. Against this background, the BTC price fell to $32,500 due to another Chinese FUD. Even so, the first year of the pandemic saw Bitcoin hit a record high of $30,000.
In May 2021, several Chinese departments declared statements alerting citizens about funding in cryptocurrencies, and next month PBoC required banks and other financial service providers to close access and personal accounts for those who carried out cryptocurrency transactions.
June continued the negative trend of spring with a total ban on mining in China. This was not only the reason for the price fluctuations, but also the “big exodus of miners” from the country to North America, Kazakhstan, and other states that are more friendly to crypto mining.
The complete number of times that China has failed to destroy cryptocurrencies has already crossed the mark in 19 high-profile cases. As you can see, FUD almost always knocked down the price of the main asset, but this did not last so long. And although insiders claim that the latest ban on digital currency trading has become the most serious, the price of Bitcoin is now again over $42,600, which means only one thing: continue to HODL.
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