Skip to content Skip to footer
small toy figure on screen mining crypto

China’s Crackdown on Crypto Spells Trouble for Bitcoin, Evergrande Defaults & German Business Confidence Stalls

Bitcoin tumbles on China crackdown

Prices of Bitcoin were trading lower to end the week, as it was reported that Chinese authorities were continuing their crackdown on cryptocurrency.

This comes as the PBOC or People’s Bank of China stated that any offerings of “trading, order matching, token issuance and derivatives for virtual currencies” were strictly prohibited.

China’s Timeline with Crypto
In 2013, the government defined bitcoin as a virtual commodity and said individuals were allowed to freely participate in its online trade. Later that year financial regulators banned banks and payment companies from providing bitcoin-related services.

In September 2017, China banned initial coin offerings (ICOs) in a bid to protect investors and curb financial risks.

By July 2018, 88 virtual currency trading platforms and 85 ICO platforms had withdrawn from the market

Earlier this year, Chinese regulators tightened restrictions that banned financial institutions and payment companies from providing services related to cryptocurrency.

The news was broken via an online Q&A on the bank’s site, where it also said that “Overseas virtual currency exchanges that use the internet to offer services to domestic residents are also considered illegal financial activity”.

BTCUSD fell to an intraday low of $40,994, with the price of Ethereum also dropping in today’s session.

Markets jittery as Evergrande defaults

Markets across the globe were jittery on Friday, as news broke out that China Evergrande had defaulted on its debt payment.

The company went into “technical default”, as it failed to clear payments for holders of its dollar bonds, with the deadline passing on Thursday.

Now, Evergrande has a grace period of 30-days, where it must fully satisfy the claims otherwise it will be officially declared in default.

Evergrande’s misfortune
3 days ago Chinese Real Estate giant Evergrande was largely blamed for Monday’s stock market selloff; however, the company’s CEO today spoke, attempting to calm market nerves.

Evergrande, was labelled “Lehman 2.0”, as onlookers anticipated its pending bankruptcy. investors around the world have grown increasingly concerned over whether the indebted and troubled Evergrande could spark a wider shock to the global economy. 

In the United States, the NASDAQ was most impacted by the news trading -0.20% as of writing.

London’s FTSE 100 closed 0.38% lower.

German business confidence stalls ahead of election

Germany’s DAX 30 was another index to end the week lower, as data from the country showed that business morale had fallen.

The data, which was released by the Ifo, showed that confidence fell for a third consecutive month.

Ifo’s business climate survey came in at 98.8, marginally lower than the 98.9 expected sum.

Germany’s election
Investors are bracing themselves for the fallout from a highly unpredictable German election this weekend, analysts say that Europe’s bond markets are already hinting at a political shift.

Sunday’s vote remains wide open, leaving fund managers reluctant to make firm bets on the dizzying array of potential coalitions that could take months of post-election horse-trading to form.

 Many attribute the decline to bottlenecks in the supply chain, caused by the Delta variant of COVID-19, which slowed down distribution channels within Europe’s largest economy.

As of writing, the DAX 30 was trading 0.72% lower.

Quote of the day – “I know where I’m getting out before I get in.”

– Bruce Kovner

Eliman Dambell

Senior Market Analyst


Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.