PBOC warning on illicit crypto activities impacts market, says CNBC

A warning from the People's Bank of China (PBOC) against illegal virtual asset activities has negatively impacted the market, CNBC reported. The central bank recently announced that, following consultations with relevant agencies, it would strictly crack down on illicit activities involving virtual assets like stablecoins. According to the outlet, experts believe heightened risk-off sentiment continues to weigh on the market, with some watching for large-scale liquidations of leveraged positions. Ben Emons, founder and chief investment officer of advisory firm Fedwatch Advisors, stated that market participants remain anxious following a major Bitcoin sell-off. He suggested that yesterday's price decline was likely influenced by $400 million in exchange liquidations, noting that some exchanges offer leverage of up to 200x on a significant scale.