The old FUD, the new BTC price fell-a few weeks ago China’s crypto “ban” triggered a $42,000 bitcoin price drop

Bitcoin (Bitcoin) Suddenly lost $2,000 in one hour on September 24, because there appeared to be old news about China’s regulatory ban on social media.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin vs. China: Don’t believe in “FUD”

Data from Cointelegraph Markets Pro with Transaction view Follow BTC/USD as it suddenly dropped from 45,000 USD to close to 42,000 USD.

The subconscious move came from a memo from the People’s Bank of China (PBoC), the central bank of China, which began to circulate online, criminalizing almost all cryptocurrency activities, but not including possession.

However, as pointed out by commentators, the People’s Bank of China originally issued the updated guidelines on September 15, but they posted it online today.

Nonetheless, it has now become a classic source of BTC price pressure—the “FUD” of the Chinese ban—and soon has an impact on market sentiment.

“The market always reacts so strongly to FUD. It’s impressive,” Cointelegraph writer Michaël van de Poppe reacted.

The imminent closure of the Chinese real estate giant Evergrande also triggered a similar reaction, which has been a niche topic for a long time before the mainstream media attracted attention. chain reaction Spanning cryptocurrency and traditional markets.

Altcoins suffer because Ethereum is below $3,000

At the same time, with the return of the Chinese narrative, altcoins have also joined the ranks of Bitcoin.

related: Shanghainese: Shanghai RMB stable currency, Evergrande FUD, FTX strengthen

ether(Ethereum) Fell by more than 7% at the time of writing, and once again lost the $3,000 support line.

ETH/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

The trading prices of the top ten cryptocurrencies by market value fell by up to 9% in an hourly time frame.