China Orders Internet Firms to Halt Crypto Services Amid Extreme Fear Market

VADODARA, February 6, 2026 — China has ordered internet companies to halt all cryptocurrency-related services. Walter Bloomberg reported the directive. This daily crypto analysis reveals a market structure under severe stress. Bitcoin price dropped to $67,199. Extreme fear grips global sentiment.

Investigation: The Regulatory Directive

China issued a formal order to internet firms. The directive mandates an immediate cessation of crypto services. According to Walter Bloomberg, this includes trading platforms, wallet providers, and informational sites. The move targets domestic access points. It follows a multi-year crackdown on digital assets.

Market analysts interpret this as a liquidity grab. On-chain data indicates accelerated selling pressure. Consequently, Bitcoin's 24-hour decline hit -3.06%. The order amplifies existing regulatory headwinds. Historical cycles suggest such actions create short-term volatility.

Market Context & Historical Precedent

China's crypto policy remains consistently restrictive. The 2021 mining ban set a precedent. In contrast, this latest move targets the service layer. Underlying this trend is a push for digital yuan dominance. The People's Bank of China has long opposed decentralized assets.

Market structure now mirrors 2021's post-ban selloff. However, global adoption has since expanded. Institutional inflows via ETFs provide a counterbalance. , decentralized protocols offer alternative access. This creates a complex liquidity .

Related developments highlight global regulatory shifts. For instance, China recently banned unauthorized yuan stablecoins overseas. Additionally, Eurozone finance ministers are discussing a euro stablecoin. These moves reflect broader monetary policy tensions.

Technical Architecture & Price Action

Bitcoin price action shows a clear breakdown. The asset breached the $70,000 psychological support. Market structure suggests a retest of the Fibonacci 0.618 level at $65,000. This level aligns with the 200-day moving average. A hold here would indicate institutional accumulation.

RSI readings entered oversold territory at 28. Volume profile confirms distribution. Order blocks formed near $72,500 now act as resistance. The Fair Value Gap (FVG) between $68,000 and $69,500 remains unfilled. This creates a potential reversal zone.

On-chain metrics reveal increased UTXO age band movement. Older coins are moving to exchanges. This typically precedes volatility. The gamma squeeze potential has diminished. Options markets price in further downside.

By The Numbers

Why It Matters

China's action impacts global liquidity flows. Internet service halts restrict retail access. This forces capital toward offshore or decentralized platforms. Institutional players monitor such shifts for entry points. The Federal Reserve's monetary policy now interacts with fragmented crypto regulation.

Market structure evolves under regulatory pressure. Retail sentiment drives short-term moves. Institutional frameworks adapt to jurisdictional arbitrage. Consequently, the 5-year horizon depends on regulatory clarity. Global coordination remains absent.

Expert Commentary

China's directive creates a liquidity vacuum. Market analysts see this as a test of decentralized resilience. The CoinMarketBuzz Intelligence Desk notes that historical bans have preceded long-term accumulation phases. However, immediate price action reflects panic selling.

Market Outlook & Price Scenarios

Two data-backed scenarios emerge from current structure. Technical levels define invalidation points.

• Bullish Invalidation Level: $72,500. A break above this order block resistance confirms trend reversal. It would fill the FVG and signal institutional buying.
• Bearish Invalidation Level: $65,000. A sustained break below Fibonacci support invalidates the current structure. It would target the $60,000 psychological zone.

The 12-month outlook hinges on macro liquidity. China's policy tightens local supply. Global ETF flows may offset this. Institutional adoption continues despite regulatory hurdles. The 5-year cycle suggests consolidation before next leg.