China declaring all crypto transactions illegal sent shockwaves through Asia’s fintech market. It adversely impacted Hong Kong as well; not just crypto exchanges, but firms and stocks related to crypto were also feeling the bite.
FUD impacts crypto related companies
“To comply with local laws and regulations, Huobi Global has ceased account registration for new users in Mainland China, effective September 24, 2021 (UTC+8). Huobi Global will gradually retire existing Mainland China user accounts by 24:00 (UTC+8) on Dec 31, 2021, and ensure the safety of users’ assets.”
Huobi had its headquarters in Seychelles and was founded in China. But even companies with less obvious links to the crypto sector came under the radar. OKG Technology Holdings Ltd., owned by OK Coin crypto exchange founder Xu Mingxing saw a fall of more than 20%.
The big three
What about the most obvious targets? China’s latest crackdown didn’t come out of the blue for Binance, Huobi, and OKEx. Chinese search engines had previously blocked the three crypto exchanges and deactivated their accounts.
While Binance Coin [BNB] wasn’t greatly affected by the latest crackdown, Huobi Token [HT] saw a steep drop in price and its 24 hour trading volume fell by 23.94% at press time. OKEx’s OKB token also fell, but was recovering at press time.
Buying the dip
One can argue that El Salvador’s President Nayib Bukele helped boost the popularity of the trend. After the most recent instance of China FUD, Glassnode data showed that the number of addresses holding more than one BTC had reached a three-month high.
Previous 3-month high of 809,810 was observed on 21 September 2021
— glassnode alerts (@glassnodealerts) September 26, 2021
This didn’t apply to just the king coin. Glassnode data further showed that the number of addresses holding more than 10 ETH had hit a six-month high for the second day in a row.
Previous 6-month high of 278,342 was observed on 26 September 2021
— glassnode alerts (@glassnodealerts) September 27, 2021
Yet, it wasn’t just contrarian traders making the most of adversity. During the last weekend of September, crypto whales went into a frenzy, moving hundreds of millions of dollars in Bitcoin and Ether through Huobi addresses or sending them into unknown wallets.
At press time, the price of Bitcoin was $$44,050.08.