The People’s Bank of China hit the cryptocurrency market hard by declaring that all transactions made with digital currencies will now be illegal, giving markets a one last bearish push for closing up a hard week for crypto markets.

Last week was evidently one of the toughest and most volatile weeks for crypto currencies in 2021, as we saw great price variations, mostly market crashes in the past few days. At first, we experienced one of the strongest market crashes we have recently in crypto markets, which made Bitcoin’s price drop more than 15% along with almost every other cryptocurrency. There is no doubt that Chinese’s real estate firm, Evergrande, unleashed panic not just in cryptocurrency markets but in all financial markets, after there is still a lot of speculation related to their situation related to the payment of their short term debt. As you may know, the company declared that they do not have enough liquidity to pay the near-term bond they issued, which would lead to a default if they do not cover them by the end of a 30 day grace period. This would be the beginning of a lot of problems in the Chinese real estate sector, which would also expand having a global impact. It will be very important for investors to be aware of the Chinese government’s response in this situation, as well as the agreements that Evergrande can make with its biggest creditors. Is this the end of this massive firm? If that was not enough, the Chinese government did it again, banning and declaring illegal every single transaction made with digital assets in the whole country, including crypto mining processes. This was decreed by some of the most important Chinese public institutions, starting with the People’s Bank of China. They argue that crypto assets should not circulate in financial markets as they are not fiat currencies, in addition to the fear that exists related to the increase of illegal activities such as money laundering, fraud, Ponzi schemes and not authorized funds. Bitcoin opens this week climbing up to $43,000 showing a little recovery from last week’s bearish movements. We could see BTC going all the way up to $46,000 if it achieves to break that resistance around $44,000. Ethereum, by its part, is practically simulating Bitcoin’s movement, with a little recovery that shows hope for all bullish traders. We can see ETH going up to $3,300, nevertheless, remember we have a strong resistance very close, so let’s wait to see if it achieves to break that zone. It is clear that we have many critical weeks coming ahead not just for crypto currency markets, but also for all financial markets, so that we have to be aware of various issues such as the resolution of Evergrande’s case, the stance of the Chinese and American governments related to cryptocurrency market regulations and also about the stance and statements coming from funds and important companies that can have an impact on the crypto market. Very interesting days are coming, so without further ado, we wish you an amazing week.