BTC drops below $ 7,000 because of China's new move against the crypto industry

Chinese authorities have again taken action against digital currencies. PBoC has revealed that it intends to hit the crypto industry.

Earlier, President Xi encouraged blockchain technology and companies to use it. This has inspired fresh optimism in the crypto markets, but recent developments are in full blown intentions of Xi.

The central bank has stated that blockchain technology and cryptocurrencies are not the same thing. The bank warned of the risks behind digital asset trading. The Chinese will take a number of measures, including conducting interviews, inspections and foreclosures on organizations and individuals at risk. On the day the PBoC decision came out, it was reported that 39 illegal cryptocurrency trading and trading companies operating in China had been identified. These companies are accused of being a Ponzi scheme or engaged in some other type of fraudulent activity.

The consequences are also visible in the crypto market. Price accelerated the collapse after reports that police raided Binance and Bithumb's Shanghai offices. However, both exchanges denied the news.

The price has reached a key and critical area. The breakthrough here will potentially accelerate sales to the area at 78.6 Fibo or $ 5577.

Source: Finance Magnates

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