Crypto Daily News from ZBG Exchange

1. Market Wrap: Bitcoin Slides to Two-Week Low, Ether to Below $2K as China Reiterates Crypto Ban

CME’s bitcoin futures goes into “backwardation” and BTC inflows to exchanges rise as China “FUD” continues.

China’s central bank announced Monday it had recently summoned several banks and payment firms to ramp up their crackdown on cryptocurrency trading, prompting several key market indicators to turn bearish Monday.

Bitcoin (BTC) trading around $32,590.39 as of 20:00 UTC (4 p.m. ET). Slipping 7.88% over the previous 24 hours.

Bitcoin’s 24-hour range: $31,744.99-$36,119.80

Ether (ETH) trading around $1,945.31 as of 20:00 UTC (4 p.m. ET). Slipping 12.21% over the previous 24 hours.

Ether’s 24-hour range: $1,893.15-$2,276.16

Bitcoin faces significant selling pressure in Asia

Monday’s sell-off was triggered by negative news in China once again. But the market is split on the severity of the renewed crackdown by the Chinese government.

The correction is “mostly driven by China FUD [fear, uncertainty and doubt] again,” Annabelle Huang, partner at Hong Kong-based Amber Group, told us. “Hardly news, not that [banks and payment services in China] are really providing services to crypto-related [business] anyway.”

2. Strike Is Phasing Out USDT From Bitcoin-Based El Salvador Remittances, CEO Says

“Tether is no longer a part of anything,” Jack Mallers said on the “What Bitcoin Did” podcast.

Strike, the startup building a bitcoin-based payment system in El Salvador, is phasing out its use of Tether’s USDT stablecoin as a U.S. dollar substitute, CEO Jack Mallers said.

“Tether is no longer a part of anything,” Mallers said on an episode of the “What Bitcoin Did” podcast released last week. “Tether was part of the plan originally because it had to be, because I didn’t have a choice.”

Mallers’ remarks — which come less than a month after he introduced El Salvador President Nayib Bukele to the Bitcoin community at a Miami conference — may come as a relief to those concerned about USDT’s backing.

3. Ether Drops Below $2K, Bitcoin Wilts as China Tells Banks to Cut Off Crypto Transactions

China’s central bank said major financial institutions must stop providing trading, clearing and settlement for crypto transactions.

Bitcoin, ether and other cryptocurrencies are trading lower after the People’s Bank of China (PBOC) called for a stricter crackdown on virtual-currency dealings.

Ether, the second-largest cryptocurrency by market value, is changing hands near $1,920 at press time, the lowest level since May 23.

The token powering Ethereum’s blockchain is down nearly 15% on the day and appears on track to test the 200-day simple moving average (SMA) support at $1,872.

Bitcoin is trading 10% lower near $31,850, extending last week’s 8.7% decline.

Other top cryptocurrencies including XRP, cardano and polkadot are nursing losses ranging from 5% to 10%.

In an announcement early today, the PBOC said major financial institutions must stop providing trading, clearing and settlement for crypto transactions.

While China’s anti-crypto stance is well established, the latest statement comes after consultation with Alipay and major banks including the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank and Industrial Bank.

The central bank asked for prompt discontinuation of payments channels to crypto traders.

Alipay, the Agricultural Bank of China and Postal Savings Bank have put out statements saying they will take necessary steps to prohibit virtual currency-related business activities.

PBOC’s strongly-worded communique has bolstered concern of a stricter regulatory crackdown. The resulting weakness in cryptocurrencies appears to be weighing over shares of companies holding bitcoin and involved in virtual currency businesses.

Per data source TradingView, shares in MSTR are currently down 7%, and those in Tesla, Coinbase, Square are nursing 1.5% to 3.5% losses, even though the S&P 500 is trading 1% higher on the day.

Crypto markets tanked last month on the back of environmental concerns related to crypto mining, China’s crackdown, and fears of an early scaling back of stimulus by the U.S. Federal Reserve.

China reiterated its crypto ban last month, citing dangers associated with speculative trading. On Friday, the government intensified pressure on cryptocurrency mining by ordering the closure of 26 suspected mining projects in Sichuan.

The Fed unexpectedly brought forward the timing of the first interest-rate hike to 2023.

4. Real Estate Mogul to Spend $100M on Decentralized Social Networking Protocol

Project Liberty will utilize blockchain technology to build a new type of internet infrastructure aiming to democratize social media data.

Billionaire real estate mogul Frank McCourt will invest $100 million in a project leveraging blockchain technology, attempting to democratize social media data.

According to a report by Bloomberg on Sunday, McCourt’s Project Liberty will focus on the development of a publicly accessible database of people’s social connections.

The hope is to encourage a more egalitarian approach by having social media companies, such as Facebook, draw from a shared place of social data.

5. China Says Banks Must Block Crypto Transactions; Market Falls

China’s central bank says institutions must not provide trading, clearing and settlement for crypto transactions.

The People’s Bank of China (PBOC) on Monday told the country’s major financial institutions to stop facilitating virtual-currency transactions, increasing the negative sentiment in crypto markets.

Banks must not provide products or services such as trading, clearing and settlement for crypto transactions, the PBOC said in a statement.

They also have to make sure to identify virtual-currency exchanges’ and over-the-counter dealers’ capital accounts, and cut off the payment link for transaction funds in a timely manner, it said.

Cryptocurrencies fell, with bitcoin trading near $32,000 and ether dropping below $2,000 for the first time since May 23.

While the PBOC’s anti-crypto bias is not new, the latest statement comes after consultation with the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank, Industrial Bank and Alipay (China) Network Technology on the issue.

The central bank noted the hype surrounding virtual-currency transactions, and identified them as a risk for illegal cross-border transactions and money laundering and a challenge to economic and financial order.

Financial institutions and banks have agreed to take necessary steps in line with the PBOC’s guidelines, it said.

The Postal Savings Bank issued a statement saying it will take steps to prohibit virtual currency-related business activities.

According to journalist Colin Wu, payments platform Alipay and the Agricultural Bank of China also issued similar statements.

The PBOC’s diktat comes after the government’s crackdown on crypto mining activities in the Sichuan province, the world’s largest hydro-powered bitcoin mining area.

China rocked the crypto markets last month, reiterating the long-held ban on cryptocurrency trading and mining.

Founded in July 2018, ZBG is a Hong Kong-based cryptocurrency exchange, a global platform of ZB.COM.

ZBG.com has quickly become one of the top 10 exchanges in the world with its innovative, efficient and global operations, and is known as a “New First-Tier” exchange.

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In the future, ZBG will continue to expand its global market and provide stable, safe and fast blockchain project listing, diversified crypto assets and blockchain derivatives investment services to more blockchain enthusiasts around the world.

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ZBG Team

June 22, 2021

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Launched in 2018, ZBG is a Hong Kong-based crypto exchange, a subsidiary of ZB.COM. ZBG is focused on providing a trading platform for new and innovative tokens