​As China Defines Crypto Trading As Illegal, Bitcoin Plummets Briefly

Earlier on Friday, the People's Bank of China issued an announcement entitled "Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype", which directly defining that all crypto trading activities are illegal in the Chinese market and are not protected by any law. 

This is the first time that Chinese supervision has clearly stated that participation in virtual currency investment and trading activities involves legal risks, criminal liabilities, and the provision of trading services by overseas exchanges is an illegal financial activity.

After the release of the filing, the top ten cryptocurrencies all experienced declines to varying degrees. Bitcoin fell nearly 5% to an intraday low of $41,220, falling below the $42K that was just recovered two days ago.

Looking at the entire crypto market, the native exchange coins that have been hit hardest in this wave of bad news, Huobi Token (HT), Huobi exchange's native token, have seen a 20% intraday drop. OKB, a global utility token issued by OKEx Blockchain Foundation saw an intraday drop of 18.12%.

According to the data from Bybit, after the China ban news circulated, nearly $259 million contracts were liquidated in 4 hours, of which the Bitcoin contract liquidated over $84 million, which was 30% of the liquidation volume.

By Mary Liu

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