The Chinese cryptocurrency crackdown was a headliner at the end of September due to its implications for the domestic industry.
However, it was not the first one deployed by the government. Although it seemed to be harsher than the previous ones announced, Bitcoin (BTC) had just undergone short-lived bearish pressure as a result, but later it managed to make a strong comeback in terms of price action.
That was the case when BTC’s price was hovering around the $50,000 neighborhood, and despite the sell-off at the end of that month, the world’s largest crypto by market cap strongly recovered to refresh its all-time highs above $66,000.
Coming back to China’s news, in mid-October, the government promised to bolster its tough stance against the domestic sphere by taking punitive measures against crypto trading and companies dealing with the industry, including the Bitcoin mining one.
In fact, Beijing instructed the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security to take care of the situation to reinforce the measures announced, aimed to tackle “cryptocurrency trading hype” in China.
Many Crypto Websites Are Alive In Mainland China
However, state-owned news media outlet Xinhua reported that there are still many websites operating Mainland promoting cryptos as of press time.
Their excuse? Promoting blockchain and “metaverse-related” activities. On such websites, trading tutorials, promotional banners of in-live person meetings or events can be seen. Under the new crackdown unleashed by the government, all these activities are illegal.
Many of these websites are highly promoting functions for traders accessing overseas crypto trading platforms to check their activities and projects, as the access from China is blocked, implying the usage of virtual private networks (VPNs).
Strengthening The Crackdown?
Xinhua suggested in the article that the crackdown needs to be extended to social media and chat platforms – something that the government had done in previous crackdowns.
As a result of the new measures, crypto mining companies fled from China to establish their farms in other crypto-friendly countries to keep running their operations, taking down the Asian giant as the leader in Bitcoin mining globally.
However, it’s proven that crypto crackdowns in China are not enough to tackle most crypto-related activities across the Mainland.
For now, BTC keeps stagnant at around $61,466, holding the $60,000 handle and looking to crack above the psychological level of $64,000 in case bulls gather momentum.
However, a breakout of the support area of $60,000 should open the doors to form a leg lower and extend the bearish bias towards $58,000, which is located below the 200-period simple moving average at the H4 chart.