China tightened its grip on cryptocurrency on Friday, September 24, making all crypto-related transactions illegal in the nation. The reaction of investors was apparent, as the crypto market plummeted following the announcement.
However, it appears that Bitcoin whales are concerned about China‘s new prohibition. Bitcoin (BTC) is now trading 4.5 percent higher at $44.030, with a market capitalization of $827 billion as of press time. It indicates that strong whale buying has recovered over 80% of the market’s previous drop.
Crypto expert Lark Davis said that Bitcoin millionaire-tier whale addresses had accumulated rapidly in this latest drop, using data from Santiment. 80,000 Bitcoins were added to the purse of these whale addresses holding 100-10K Bitcoins.
It isn’t the first time China has used its might to shut down cryptocurrency. Despite the fact that it has been trying since 2017, the crypto market continues to grow stronger with increased investor involvement. At the same time, it’s not just Bitcoin whales who’ve been amassing large sums of money. According to Glassnode, Bitcoin is accumulating throughout cohorts.
China Expert Opinions Ban
In comparison to other cryptocurrencies, Bitcoin has demonstrated more resistance to China FUD, according to Wes Fulford, CEO of financial advisor Viridi Funds. Fulford wrote in a message last Friday:
“We are witnessing a price drop in cryptocurrency markets, but it is far less than prior bans since the market has already priced in the possibility of China prohibiting bitcoin transactions.”
Tim Frost, CEO of Yield App, said in an email to Business Insider that the change was expected. China is increasingly likely to restrict the usage of public cryptocurrencies from all ends as it pushes its Digital Yuan. He went on to say:
“China has made its goals very clear: it, like other authoritarian governments, wants complete control over all financial activities in the country, as well as no competition for its own central bank digital currency.”
Fortunately, there are several nations and authorities that are currently accepting bitcoin. While the loss of the world’s most populous nation is a setback, most of the harm has already been done.”