Did Bitcoin Just Stumble Below $36,000 On Reports Of Chinese Weibo Blocking Many Crypto-Related Accounts?

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Bearish Rumble Intensifies As China Moves To Crack Down On Bitcoin Mining and Trading Activities
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The recent regulatory crackdown on bitcoin and crypto in China has reached a new dimension, with the country’s social media giant Weibo banning several crypto-related accounts.

The news was reported by Colin Wu or Wu Blockchain on Twitter, the author of the Chinese crypto newsletter Wublock, who described this as “the harshest suspension of crypto in history”. The massive banning of accounts appears to be in response to the latest crackdown on cryptocurrencies from the Chinese government. According to Wu Blockchain, the accounts banned include those of China’s most famous DeFi leaders and many well-known traders.

Notably, Beijing has been attempting to quell and regulate the cryptocurrency boom over the past couple of weeks. In particular, the government has tightened restrictions preventing payments firms from providing crypto-related services.

The latest bout of China-imposed prohibitions has also targeted cryptocurrency mining operations in the country. Multiple companies like OKEx, BTC.TOP, and Huobi suspended their mining activities for Chinese clients. China even introduced new penalties for those caught engaging in mining efforts in Inner Mongolia and Sichuan as the nation heads towards a more carbon-neutral target.

Just two days ago, however, Chinese state-run media Xinhua News Agency maintained that bitcoin trading is not illegal while warning the citizens of crypto trading risks. “If Bitcoin and other virtual currencies are only traded as virtual goods, people have the freedom to participate in the transactions at their own risk,” the government mouthpiece wrote.

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Bitcoin Price Slides 5%

China is known for its vague approach to cryptocurrencies. In previous bull markets, fears of the superpower banning bitcoin have rattled investors, subsequently pushing the price of the crypto down.

BTCUSD Chart By TradingView

The news of Weibo blocking crypto accounts may have made some investors panic, sending the asset 5% into the red today. Prior to the news surfacing, bitcoin was trading above $38,000 but has since fallen to $35,740.88 at the time of publication.

Wu Blockchain later clarified that accounts not involved in ads of crypto exchanges have not been banned. That said, it’s still unclear whether bitcoin tumbled due to the latest wave of bearish news from China or it was just a technical correction.