What Happened: Bitcoin BTC/USD fell by over 8% after news that China’s third-largest bank would begin suspending customer accounts associated with cryptocurrency transactions.
The Agricultural Bank of China (ABC), one of the “big four” banks in the country, issued a statement on Monday, saying that it prohibits the use of its services for virtual currency transactions such as Bitcoin.
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The statement also emphasized that once relevant behaviors are discovered, customer accounts will be terminated and reported to the relevant authorities in a timely manner.
ABC reportedly consulted with relevant departments of the People’s Bank of China before issuing the statement, saying that it will continue to “carry out the crackdown on virtual currency transactions.”
Why It Matters: The bank’s statement comes as the latest move in a series of measures enforced over the weekend, demonstrating the Chinese government’s efforts to clamp down on cryptocurrency-related businesses.
Most large Bitcoin mining farms in Sichuan were forcibly shut down by authorities over the weekend, leading to a significant drop in the hash rate on the Bitcoin network.
According to a report, the Sichuan branch of the National Development and Reform Commission (NDRC) and the Sichuan Energy Bureau closed 26 suspected crypto mining projects on Sunday.
According to some accounts, ACB may have deleted the notice soon after posting it.
Price Action: At press time, Bitcoin was trading at $32,931. The market-leading cryptocurrency saw a 45% increase in 24-hour trading volume, which stood at $42 billion at the time of writing.
The 50-day moving average has fallen below the 200-day moving average, confirming a Death Cross scenario for the digital asset.
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