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Bitcoin Pulls Back from $45,000 as China Cracks Down Again

Bitcoin Pulls Back

Created by TradeOr

3rd Party Analysis 24 Sep 2021

Key Takeaways

  • Bitcoin retreats from session high above $45K as China’s central bank vows crackdown
  • Twitter’s newest Tipping feature now allows you to get paid in bitcoin for posts

Bitcoin Retreats from Over $45K after China Issues a Ban

The price of bitcoin slipped from its session high of $45,000 today. This retreat happened as the Twitter-inspired rally began losing momentum following negative news from China.

The leading cryptocurrency rose to a session high of $45,100 on Friday. However, crypto traders and investors could not fuel the rally higher. This lead to the further decline of the price. Bitcoin slipped about 5% on the day to reach a current market price of $42,500 per token.

The sudden drop on Friday was allegedly a result of a cryptocurrency ban from China. Indeed, Chinese authorities have taken a rather serious step in attempt to prohibit all cryptocurrency activity.

All Crypto Transactions Now Illegal in China

According to a news report from CNBC, China’s central bank, the People’s Bank of China, said all services related to cryptocurrency transactions are strictly prohibited. Furthermore, as the central bank has labeled them illegal, it has also banned all crypto exchanges that provide services in mainland China.

“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” the central bank of China said, according to a CNBC translation of the comments.

“Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” the PBOC also said in its statement.

Market Sentiment Turned Sour Amid a Major Twitter Update

The news cast a shadow over the otherwise improving cryptocurrency market. Late on Thursday, bitcoin spiked about 4% to close the day at $44,650. The upside swing was fueled by a Twitter update. The social media company had just rolled out a Bitcoin-friendly feature.

In fact, the Tips feature on Twitter now makes it possible for users to get paid in bitcoin for the content they create on the platform. Accordingly, Twitter said that the Tips feature is now live for iOS users and will shortly be available for Android devices.

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