Crypto markets are falling in the past hour, with blame being put at the feet of Chinese vice-premier Liu He. He commented that the country is going to be cracking down Bitcoin mining and trading. Further, he said that the country would be banning all companies from facilitating cryptocurrency trading. 

Most major coins took the news badly, with Bitcoin falling from $45,000 to $42,490 at we write. We think that this stance from China is a definite negative for the industry, given the scope of the Chinese economy and potential for adoption. With news earlier this week of Coinbase backing down from launching a new deposit product following SEC intervention, the future viability of crypto has been called into question.

We prefer to sit on the sidelines to watch how this plays out over the rest of today and the weekend, but would be a tactical buyer of Bitcoin at previous support levels around $40,000.

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