Over $100 Billion Wiped Off: Bitcoin (BTC) Price Falls As China's Central Bank Vows to Ban Cryptocurrency Trading

September 24, 2021 6:03 AM EDT
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Bitcoin (BTC) price fell 5% Friday morning after China’s central bank said it will prohibit all cryptocurrency trading-related activities.

The People’s Bank of China (PBoC) described all cryptocurrency activities as illegal in a post on its website.

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

The PBoC said it will bank international exchanges from providing trading services to its residents and will increase monitoring of risks stemming from such activities.

“Recently, virtual currency trading hype activities have risen, disrupting the economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, and seriously endangering the safety of people's property,” the rough translation of the statement reads.

As a result, the total cryptocurrency market capitalization fell from $2 trillion prior to the statement to below $1.9 trillion.

The Coinbase (NASDAQ: COIN) data shows BTC fell almost 5% as it went from $44,500 to $42,200 in an hour. The world’s largest cryptocurrency is now down over 10% on a weekly basis.

Ethereum (ETH) price is down almost 9% to reverse its prior gains and trade again below the $3,000 mark.

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