Bitcoin’s price fell 8% today after news “last minute” (well read: weeks ago) announced that the People’s Bank of China, PBoC, for its acronym in English, had declared all cryptocurrency transactions.
Now let’s take a nostalgic look at the past 12 years of China-triggered FUD and see if we can spot any patterns.
China banned “digital currencies” for the first time in 2009
1: Chinese regulators weren’t exactly crypto advocates before the 2017 ICO boom. When cryptocurrencies were still in their infancy, in 2009, the Ministry of Culture and Commerce of China banned the use of “digital currencies” to buy real goods. While not specifically targeting Bitcoin (BTC), the move appeared to set the precedent for more than a decade of anti-cryptocurrency regulation.
The first specific ban on Bitcoin came in 2013
2: In 2013, the PBoC prevented Chinese financial institutions from processing BTC transactions, calling the cryptocurrency a currency with no “real meaning”. The news caused the price of BTC to drop below $ 1,000 at a time when BTC China, or BTCC, was the largest cryptocurrency exchange by trading volume.
The asset recovered within a few weeks.
False ban threats plagued 2014
2014 taught us that fake reports from PBoC regulators are sometimes as effective as real ones.
3: In March, a fake story on Sina Weibo’s website claimed that the central bank of China planned to suspend all Bitcoin transactions in the country from a month on. Although the news turned out to be meaningless, it didn’t stop the price of Bitcoin from falling.
4: Around the same time China’s FXBTC exchange said it would close its doors amid threats from regulators to ban the exchanges. A combination of both incidents could have been responsible for Bitcoin’s slump from $ 709 to $ 346.
Although the price plummeted sharply, the price began to recover in a short period of time and again exceeded the USD 600 mark in late May.
Chinese stock exchange hack caused the prices to collapse briefly in 2016
5: Although it is not controlled by China, Hong Kong-based Bitfinex fell victim to one of the biggest hacks in August 2016. Attackers stole approximately 119,756 bitcoins (valued at more than $ 5 billion at the time of writing) and some of the funds are still being tracked to this day. Back then, news of the hack on one of the major exchanges in the market is said to have caused the price of BTC to fall by more than 10% in two days.
However, in September prices rose back to pre-hack levels.
In 2017, China published crypto-related bans twice in a month
6 and 7: In September, the Chinese government has officially banned the exchange from providing services to users within the country, and the PBoC announced that Chinese citizens will not be allowed to participate in Initial Coin Offerings.
It took Bitcoin three months to soar from $ 4,000 to an all-time high of around $ 20,000.
8 and 9: The cryptocurrency was headed for one of its biggest bull runs when the BTCC ceased operations amid the government’s “ban” (it is still operational), and the PBoC’s deputy governor stated that “the body of bitcoin” would one day be swimming in the river.
In the meantime, the cryptocurrency was already on the mend and only experienced small declines.
Several messages led to a brief crisis of belief in cryptocurrencies in 2018
10: In January 2018, News began to circulate that Chinese citizens may have crashed the prices of major cryptocurrencies.
11: Though many argued the decline was due to news from the Chinese media claiming the country was taking action against cryptocurrency mining. By mid-February, Bitcoin’s price had fallen more than 65% to $ 6,852.
However, this did not last long; at the end of the month the price exceeded the USD 11,000 mark again.
The FUD was big in 2019
12: Bitcoin’s price fell slightly in April 2019 when a draft from China’s National Development and Reform Commission revealed that the government agency was considering banning mining in the country … again.
13: The PBoC followed this measure with the Announcement that trading in cryptocurrencies would “expire immediately” upon discovery.
Despite a brief price decline, new all-time highs would soon emerge.
China would have been behind the “crypto market carnage” of 2020
14: It is believed that the “Carnage on the crypto market ” March 2020, in which the price of almost all large tokens slumped at the start of the COVID-19 pandemic, it was mainly caused by Chinese miners selling their stocks.
fifteen: The Hong Kong government announced its plans to ban cryptocurrency retailers as part of its anti-money laundering efforts in November 2020.
The first year of the COVID pandemic ended with Bitcoin breaking the $ 20,000 mark for the first time in three years. Reached an all-time high of over $ 30,000 in late 2020.
The FUD comes to the present
16: China National Internet Finance Association, China Banking Association, and China Payments and Clearing Association issued a statement in May 2021 in which warned against investing in cryptocurrencies given the possible risks.
17: A month later The PBoC ordered Chinese banks and mobile payment service providers not to offer banking and processing services to customers conducting cryptocurrency-related transactions.
18: That brings us to today when the PBoC has again declared that all cryptocurrency transactions in China are illegal.
The total number of cases the FUD from China failed to kill cryptocurrencies: 18
Including today’s message from the PBoC there was 11 news direct from Chinese and Hong Kong regulators who enforced or advised of a ban on cryptocurrencies, exchanges or mining, 8 major incidents of fake news or Chinese media coverage that otherwise affected the crypto markets, and a handful of other incidents (such as hacks and Decisions by crypto companies in the country) led to burglaries. Overall, China has “banned” or somehow caused FUDs in the crypto space on 18 different occasions since 2009.
Data from Cointelegraph Markets Pro shows that the price of Bitcoin has fallen more than 5% in the past 24 hours, but is now back above $ 43,000 at press time.
Jeffrey Albus contributed research and editorial content for this article.