FX.co ★ Bitcoin tumbles after PBoC’s statement

The cryptocurrency market collapses every time China extends its crackdown on the world's most popular digital asset. Earlier, BTC could have plunged by as much as 50%. Today, however, every other ban by the Chinese authorities evokes a calmer response from the market.

During the meeting of the State Council, Fan Yifei, the deputy governor of the People's Bank of China, said that bitcoin and stablecoins had become “tools for speculation” and were bringing potential risks to financial security and social stability. Since the Chinese regulator is controlled by the ruling Communist Party, Fan Yifei’s statement can reflect the official stance of the country’s government on cryptocurrencies.

“We are still quite worried about this issue, so we have taken some measures,” the deputy governor said.

As a result, the world’s most valued digital coin only fell by 2%. It seems that the cryptocurrency market reacts now more cooly to China’s attacks, and BTC looks more stable.

In June, China introduced a ban on bitcoin mining and trading. Back then, four Chinese provinces immediately prohibited mining. Later, banks and other financial organizations were barred from carrying out cryptocurrency-related transactions.