China crypto ban made the sell-off worse, but PBOC balance sheet growth matters more than posturing and is not the only key market driver - rally remains intact

In our crypto flash Monday night, we laid out 9 reasons we thought Bitcoin was close to a bottom around $40k.

But yesterday crypto markets went for a wild ride. We got yet another sharp move lower below $30k but have since bounce back and are now at $41k. 

Part of this was due to leverage liquidations, but part of the move was also sparked by negative news of China banning crypto. 

Source: Fundstrat, Google

This is not the first time China has made such a move. It happened back in December 2013 and September 2017.