- News of a China crypto ban has caused another Bitcoin price drop
- Chinese financial institutions will no longer be able to offer crypto products
- A China crypto ban adds to Bitcoin scaling arguments, environmental worries, and Tether concerns to complete the 2017 crypto FUD bingo card
Just when you thought the crypto markets couldn’t get more 2017, news of a China crypto ban has sent Bitcoin reeling again. This news, in addition to arguments about Bitcoin’s block size and environmental impact, as well as the ongoing struggles at Tether making headlines, is a reminder that it’s not just Bitcoin that goes in four-year cycles – FUD can do it too.
China Crypto Ban Targets Financial Institutions
Reuters reported on the China crypto ban yesterday, which involves financial institutions and payment processors from “providing services related to cryptocurrency transactions” while also warning cryptocurrency users, again, about the speculative nature of crypto trading. The ban, which echoes prior attempts by the country to stifle the advancement of cryptocurrency, stops any companies involved in the processing of money to offer services related to cryptocurrency, and comes in advance of the country fully launching its own Central Bank Digital Currency.
However, it was soon revealed that the ‘news’ was in fact using quotes from prior statements:
Reuter’s article about China banning cryptocurrency payments quotes events that happened in 2017 and 2019. Recycling old news and implying that it is new is obvious market manipulation. #fakefud #fud #bitcoin #cryptocurrency #buythedip
— HappyRiverPoker (@HappyRiverPoker) May 19, 2021
Threats of a China crypto ban are something that has been a feature of the space since 2014 when a false report in a Chinese news feed suggested that the country was banning Bitcoin transactions. China has seemingly banned crypto in some respected every year ever since, to the point where it’s amazing that there’s anything left to ban, and the fact that it has come when it has, right after negativity surrounding Bitcoin’s block size, carbon footprint, and Tether’s ongoing difficulties, has left those that were around in 2017 shaking their heads and wondering if the clock has wound back four years.
Old Hands Ignore the Negativity
While many new to the space were panicking and selling their haul, others that remember the China FUD that caused concurrent 40% drops in the Bitcoin price in 2017 were less reactionary:
I don’t get it. China banned BTC in 2017. Why does the space care that they are simply reiterating this in the media now? Please can we ignore the FUD and continue with our bull market now…
— Samuel Maskell (@SamuelMaskell5) May 19, 2021
I can remember the 2017 China fud that triggered the beginning of the real bull run like it was yesterday, it was my first major crypto correction.
Diamond hands are formed by pressure and time.
— AZZAZ (@AZZAZ67686721) May 19, 2021
With the 2017 crypto FUD bingo card now seemingly complete, holders will be hoping that those responsible have now filled their bags and the bull market can continue…just like it did in 2017.