Bitcoin price sink to $32K following the Chinese FUD

Bitcoin price shed $1,000 within minutes on June 21 following fresh news from China succeeded in routing bulls yet again.

Bitcoin price sink to $32K following the Chinese FUD

Data from the leading crypto aggregator showed that BTC/USD hitting local lows beneath $32,500 on Monday.

The cause which disturbed a day of recovery from another dip appeared to once again come from China via a major bank statement that confirmed it would not allow the use of its services for transactions related to Bitcoin or cryptocurrency. Involved was China’s third-largest bank, the Agricultural Bank of China.

"The statement emphasized that once relevant behaviors are discovered, account transactions will be immediately suspended, customer relationships will be terminated, and relevant departments will be reported," journalist Colin Wu reported on Twitter.

The resulting volatility matches behavior from previous announcements by China. The country has become the source of headaches for Bitcoin bulls in recent weeks as miners face a crackdown and officials reiterate the existing restrictions on cryptocurrency in place since 2017.

Read: Bitcoin hash rate hits 8-month low as mining operations shut down in China

However, many argue that the price pressure is a typical overreaction and that ultimately, Bitcoin will benefit from a move away from Chinese reliance.

Interestingly, reports that the announcement by the Agricultural Bank of China has since been deleted are now beginning to surface.