On September 24, Bitcoin (BTC) dropped $2,000 in an hour after what looked to be old news of a Chinese regulatory prohibition spread on social media.
A letter from China’s central bank, the People’s Bank of China (PBoC), circulated online, criminalizing virtually all bitcoin activities save possession.
However, as commenters pointed out, the PBoC issued the new advice on September 15 but only put it online on September 24.
Nonetheless, what has already become a standard source of BTC price pressure — “FUD” about Chinese restrictions — was fast to impact m.
FUD from weeks ago, new BTC price decrease – China’s ‘ban’ on cryptocurrencies has spurred debate. Bitcoin’s price has fallen to $41K.
After what looked to be old news of a Chinese regulatory restriction emerged on social media on September 24, Bitcoin (BTC) plummeted $2,000 in an hour.
A paper surfaced online from China’s central bank, the People’s Bank of China (PBoC), outlawing practically all bitcoin activity except possession.
The PBoC published the revised guideline on September 15 but only put it online on September 24, as critics pointed out.
Nonetheless, market emotions were quickly influenced by what has become a typical source of BTC price pressure – “FUD” over Chinese limitations.
“FUD has always had a huge influence on the markets. “Impressive,” remarked Michael van de Poppe, a Cointelegraph writer.
Similar sentiments happened in response to the rumored impending demise of Chinese property giant Evergrande, which had been a niche topic for a long time before widespread media coverage sent shockwaves through the bitcoin and conventional markets.
Altcoins suffer when Ether goes below $3,000 per coin.
Meanwhile, as the China story has reappeared, cryptocurrencies have joined Bitcoin is losing value.