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Chinese cryptocurrency investors are buying the BTC dip even after the latest notice from PBOC that designated all crypto-based activities as illegal.
Latest PBOC Clampdown Deters Newcomers
The latest notice from the People’s Bank of China has squashed the hopes of many crypto enthusiasts in China about exploiting a loophole to continue their trading activities. In fact, it could deter newcomers into the crypto space. However, weathered industry veterans in China have already been through several crackdowns and are continuing to power through the latest one. Furthermore, they are taking advantage of the market FUD caused by the warning and buying BTC and other cryptos at lower prices.
Industry Veterans Buy The Dip
Bobby Lee, CEO of Ballet Global has admitted that he is one of the investors in China who bought the dip. He also pointed out that the crypto crackdown in the country was not as bad as it appeared to be.
Shanghai-based Stephen (who wished to stay unrecognizable) said that since these policies are not new to the crop of Chinese crypto investors to which he belongs, he had purchased $20,000 worth of BTC over the weekend following the PBOC notice. He claims that it is still possible to deal in crypto via many centralized and over-the-counter exchanges.
Word of mouth around the industry is that longstanding investors have figured out loopholes and workarounds around regulatory moves, like MetaMask. It is a digital wallet online game where players buy and sell NFTs and use the platform to trade in cryptos as well.
FUD And BTC
The announcement from the PBOC resulted in further FUD in the BTC market, which has already seen its fair share of roller coaster-esque ups and downs this year. The coin has been struggling for a while to cross the $45,000 mark and had come quite close to it when news broke of the PBOC deeming all crypto activities in China to be illegal. Soon after the announcement, Huobi announced its intentions to adhere to the local regulations, stop offering new account creation in the country, and end all China-based operations by the end of 2021. The price of BTC dropped down to the $42,000 mark following that. However, the dip was short-lived, especially with so many investors still banking on the crypto. Bitcoin rallied back to $44,000 early on Monday, and most of the crypto market has followed suit.
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