Bitcoin Drops $2K as China Declares Cryptocurrency-Related Business Illegal
  The latest moves in crypto markets, in context By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets September 24, 2021 Sponsored by  (Price data as of September 24 @ 11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves by Omkar Godbole Bitcoin Drops $2K as China Declares Cryptocurrency-Related Business Illegal China strengthened its anti-crypto stance on Friday, torpedoing bitcoin's two-day winning run.
The People's Bank of China (PBOC) said bitcoin, ether, and stablecoin tether do not qualify as legal tender and cannot be used in the currency market.
The central bank declared all virtual currency-related activities illegal, including derivative transactions and overseas virtual currency exchanges serving Chinese residents.
Bitcoin fell by nearly $2,000 to $42,800 after the PBOC news hit the wires, erasing Thursday's 3% gain. The cryptocurrency was trading 4% lower on the day at 9:32 UTC.  Bitcoin prices, Sept. 23-24, 2021 (Source: CoinDesk) China renewed its crackdown on cryptocurrency trading and mining in the second quarter amid pilot testing of digital yuan. However, according to China journalist Colin Wu, the latest central bank statement is quite detailed and mentions tether (USDT) as illegal for the first time. Tether, the largest stablecoin per market value, is widely used to fund crypto purchases and as collateral in decentralized finance.
Earlier this week, New York Times reported that regulators might declare stablecoins as systemic risk. Further, U.S. Securities and Exchange Commission chairman Gary Gensler compared stablecoins to poker chips.
Analysts told CoinDesk on Thursday that regulatory uncertainty presents a major downside risk to bitcoin in the short term. Read the original story here: Bitcoin Drops $2K as China Declares Cryptocurrency-Related Business Illegal
Technician's Take by Damanick Dantes, CMT  Bitcoin Trending Lower on China Crackdown; Support at $36K-$40K Bitcoin (BTC) sellers were active during Asia hours after China's central bank declared cryptocurrency related business illegal. BTC slipped below $42,000 and is down about 3% over the past 24 hours. Initial support is seen at $40,000, which could stabilize the pullback.
A series of lower price highs from the $50,000 resistance level reflects slowing upside momentum this month. The intermediate-term uptrend has weakened, although short-term buyers could defend lower support levels into the weekend.  Bitcoin daily price chart. (TradingView, CoinDesk)
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
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