China bans Bitcoin. At the beginning of the week, Bitcoin in terms of market size is at 43,800 dollars, initially well above the psychological mark of 40,000 dollars. In the slipstream of the Bitcoin recovery, the second most important currency Ether can climb again to a level well above 3,000 dollars. Bargain hunters used the latest price shock on Friday to get back in.
The Chinese central bank (Peoples Bank of China) had declared all activities around Bitcoin and Co illegal on Friday afternoon. Also for foreign exchanges, which are in connection with cryptocurrencies, the offering of corresponding services was prohibited. Accordingly, violations of the rules are to be punished rigorously.
Even if the pronounced ban had triggered price losses on the crypto markets in the meantime, China’s tough stance does not come as too much of a surprise for investors. Already in the spring, it had been announced that it wanted to take stronger action against the entire industry. Bad news from the Middle Kingdom thus has the potential to cause selling pressure in the short term, but obviously not to throw Bitcoin and Co. off track.