Fundamentals Still Show Bull Market Continuation: Bobby Lee

  • The People’s Bank of China (PBOC), the country’s central bank, warned on its website that Chinese nationals engaged in virtual currency trading overseas are considered an unlawful financial activity
  • Meanwhile, before the news from China, the crypto economy was in the process of recovering from the original Evergrande scare’s downward plunge
  • The PBOC warning, according to Bobby Lee, the creator of one of China’s earliest bitcoin exchanges and the cold storage card company Ballet, is not the end

The People’s Bank of China (PBOC), the country’s central bank, warned on its website that Chinese nationals engaged in virtual currency trading overseas are considered unlawful financial activity. The PBOC also reaffirmed previous statements that financial institutions and non-bank payment institutions are unable to accept cryptocurrency payments. On September 24, the cryptocurrency industry was shaken by China’s central bank’s announcement that decentralized virtual currencies are not allowed in the nation. 

The PBOC has been stating things like this since 2013, then four years later, in 2017, they outlawed domestic crypto exchanges. The Chinese government tightened down on bitcoin miners operating in the nation in 2021, as the crypto economy hit new heights in value. 

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As a result, Bitcoin’s worldwide hashrate plummeted, and many Chinese miners relocated to other parts of the world. Financial institutions and non-bank payment institutions are unable to provide services for virtual currency activities and transactions.

Meanwhile, before the news from China, the crypto economy was in the process of recovering from the original Evergrande scare’s downward plunge. Ulrik K. Lykke, executive director of crypto/digital assets hedge fund ARK36, stated in a message to Bitcoin.com News that this is the Chinese government’s eighth crackdown on bitcoin. The Chinese government has once again cracked down on Bitcoin. It has done it at least seven times since 2013, including twice this year, Lykke noted. While the markets react with a price reduction each time this happens, the effect is less and more transient each time. 

Because of this, China bans Bitcoin’s narrative and has taken on a meme-like reputation in the Bitcoin community. Investors should avoid making emotional judgments based on this popular news item, as on-chain fundamentals continue to point to a bull market in Q4.

The PBOC warning, according to Bobby Lee, the creator of one of China’s earliest bitcoin exchanges and the cold storage card company Ballet, is not the end. Don’t be alarmed, China has just re-banned bitcoin. 

This time, the prohibition applies to trading on offshore exchanges (through VPN) as well as utilizing local agents or over-the-counter (OTC) services to convert CNY to and from USDT. As awful as it sounds, this isn’t the final nail in the coffin, Lee wrote on Twitter. On Friday, George Zarya, CEO of Bequant, a digital asset prime brokerage and exchange, spoke with Bitcoin.com News on the topic. China has a history of going to extremes, Zarya told the Bitcoin.com newsdesk, from extremely forceful comments and prosecutions to utter radio silence.

This time, it was made very clear that China will not encourage the growth of the cryptocurrency market since it contradicts its goals of tightening money controls and big tech. It won’t alter anything for the institutional crypto sector since those who could have departed have already done so, and those who couldn’t have either shuttered or slipped under the radar. The retail market has likely flown under the radar and will continue to sustain market volumes, according to the Bequant CEO.

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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