Last Friday, September 24, China intensified its crackdown on crypto making all crypto-related transactions illegal in the country. The investors’ reaction was obvious as the crypto market plunged immediately following the news.
But it seems like Bitcoin whales care a little about the recent China ban. As of press time, Bitcoin (BTC) is trading 4.5% up at a price of $44.030 and a market cap of $827 billion. It means strong whale purchases have recovered almost 80% of the last market dip.
Citing data from Santiment, crypto analyst Lark Davis reported that Bitcoin millionaire-tier whale addresses have accumulated sharply in this recent correction. These whale addresses holding 100-10K Bitcoins added 80,000 Bitcoins to their kitty.
— Lark Davis (@TheCryptoLark) September 27, 2021
Well, it is not the first time that China is using its muscle power to shut down crypto. It has been trying since 2017 but the crypto market continues to get stronger every time with larger investor participation. At the same time, it’s not just Bitcoin whales who have been accumulating in big numbers. As per Glassnode, Bitcoin accumulation is happening across cohorts.
#Bitcoin accumulation score by cohort.
Those blue tones we're starting to see again in recent weeks? Yes, increased accumulation across cohorts.
Very bullish if we see this trend continue. pic.twitter.com/J1QNjUso1X
— Rafael Schultze-Kraft (@n3ocortex) September 24, 2021
Expert Opinions on China Ban
Wes Fulford, CEO at investment advisor Viridi Funds said that Bitcoin has shown greater resilience to the China FUD in comparison to other altcoins. In a note last Friday, Fulford said:
“We are seeing the crypto markets down in price, however, the reaction is significantly smaller than previous bans as the market has already priced in the risk of China banning cryptocurrency transactions”.
In an email to Business Insider, Tim Frost, CEO of Yield App said that the move was pretty expected. As China continues to push its Digital Yuan to use it is more likely to ban the use of public cryptocurrencies from all ends. He further noted:
“China has made its intentions very very clear: Like all authoritarian regimes, it wants extremely tight control over all financial activity in the country, and it wants zero competition for its own central bank digital currency.
Thankfully there is no shortage of countries and jurisdictions that are now embracing cryptocurrency. So while the loss of the world’s most populous nation is a blow, most of the damage had been done some time ago.”