Bitcoin (BTC) shed $1,000 in minutes on June 21 as fresh news from China succeeded in routing bulls yet again.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
3rd biggest Chinese bank warns on crypto
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local lows beneath $32,500 on Monday.
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.
Related: Bitcoin price can hit $450K in 2021, $135K is ‘worst-case scenario’ — PlanB
As Cointelegraph reported, however, many argue that the price pressure is an overreaction, and that ultimately, Bitcoin will benefit from a move away from Chinese reliance.
Ah more China FUD.
Glad we are consistent.
— Paolo Ardoino (@paoloardoino) June 21, 2021
“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.”