Price Reports and Tales From China-Dizzy Bitcoiners

Once again the bitcoin community has been dizzy due to the significant price increase, the following correction, and rumors of China. After the sharp price rally, the discussion has turned to the Chinese central bank warning about the volatile cryptocurrency bitcoin.

Also read: China to Play a ‘Leading Role’ in Bitcoin’s Future

Rumors From China Once Again Stir the Crowd

dizzyHere’s what we know. The price of everyone’s favorite digital asset had dramatically risen in value at the beginning of the year reaching roughly $1,145 USD per bitcoin. The day after this substantial gain, bitcoin took a significant dive shaving over $300 off the price. The sudden drop was unexpected to some as the cryptocurrency’s crossover to the 4-digit range didn’t last long. Speculators wondered where the bearish decline was stemming from blaming miners selling off at the end of the year, to those who held for over three years to gain back what they once lost.

However, the uncertainty once again turned to China as many started to speculate the price drop derived from that region. The bitcoin community and mainstream media heard reports of China’s central bank warning about bitcoin. According to the regional publication, the People’s Bank of China (PBOC) explained Chinese exchanges should conduct a self examination of their operations.

“The recent Bitcoin Price is highly volatile,” explains the PBOC. “To prevent risks and uphold financial stability, PBOC Shanghai and Financial Office of Beijing have jointly met the major heads of OKcoin and Huobi to know the current status of Bitcoin trading. We have reminded them of possible risks and require it operate strictly in accordance with laws and regulations of China. We have urged the two exchanges to conduct self-examination based on related laws and correct, if any, possible irregularities.”

BTCC Exchange Says Bitcoin is Not Banned in China

After roughly six hours of media reporting that China was banning bitcoin again, statements came out from the Chinese exchange BTCC. The exchange explains that bitcoin is not at all banned in the country and the warning was business as usual. BTCC founder Bobby Lee details:

BTCC regularly meets with the People’s Bank of China and we work closely with them to ensure that we are operating in accordance with the laws and regulations of China.

Furthermore, Lee explains that the bank was warning about the volatility of the cryptocurrency just as it had in 2013. Back in 2013, there were swathes of headlines stating the PBOC was going to ban bitcoin when in fact the bank was merely warning the country’s investors. Lee says that “bitcoin is a virtual good and doesn’t have legal tender status,” and all users should be aware of the risks of volatile trading.

Price Dizziness and Cheap Bitcoin

As soon as the bitcoin community started hearing these stories, some believed it but most shrugged it off. Many of them laughing over the internet and posting their favorite China bans bitcoin memes. Others have been speculating that these rumors stem from people wanting to shake up the markets for cheap bitcoins.

Bitcoin is not banned in China and bitcoin is significantly cheaper than it was a few days ago. This is what we know, and everything else has been a mixture of price dizziness, fear, uncertainty, and doubt.

What do you think about the recent events with China and bitcoin’s price movements over the past few days? Do you think the two topics are correlated? Let us know in the comments below.

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  • Ashrafkhan Vongsengsey

    I would say that China gov wants to teach some lessons to the money launderer or tax thieves by letting the bitcoin price get high enough to let them buy bitcoin expensive price and then make news so which will make bitcoin price get down. To let them lose money by bitcoin.

    • I doubt this with over 1 billion people in China, BTC is just a drop in the bucket… most governments have bigger things to worry about.

      • Ashrafkhan Vongsengsey

        Even “one drop” can change whole faith of nation. Peace!

  • Tracer289

    Will the real coin sellers please stand up. 🙂
    Excellent summary of the situation.

  • The market had to correct. It’ll continue back toward $1000 through the year

  • sjs

    The sudden drop in BTC prices I observed on 2 consecutive days and then again on Saturday were large volumes over a short period of time. This is the same pattern on the Comex for Au where a an institution dumps 90,000 short contracts on the market. It looks like deliberate shorting to get the price down by instigating shock and panic. Who has the means and authority to do this? No individuals and not the exchanges. Who wants BTC to drop in value and prevent it’s use as a vehicle for overseas currency transfers? Who has limitless deep pockets and ‘meetings’ with the exchanges? Probably tinfoil hat thinking.

    • I think the politicians have bigger issues to think about, BTC is still small fry… now if it is worth at least as much as some well known internet companies then perhaps.

      • Comte de Monte-Crypto

        Ho the nice puppy some master wanna tell us all what to do now coz they Think we just puppy like you oh what is wrong with them sjs mister pater… yes i see control freak yes i understand we are all dogs they give the orders we shake the tails and they are happy ruling the world ? in underware behind ? computer great now we gonna change all that and traumatized them with bad spelling and freedom of speech ok ? be a nice puppy me i ll the bad speller traumatizer of the imperialism speak white wanna be

    • Comte de Monte-Crypto

      you not just mad merde you are also paranoiac they just cash bitcoin for the profits and laught at you in the face …ah ah ah just like i do dummy

      • Derek Pater

        more dribble, I made 100k on fedora coin in march 2016

        • Comte de Monte-Crypto

          Yes and my bitcoin is bigger then yours coz yours is smaller i understand now you washington wife’s get all exited when i come express my self oh mister pater so sensitive about spelling but dont give a fuck about taking the money and run and laught about the other sucker down under the pyramid ok you are certainly a great genius president of your ass hole some where so what global economy attracted global investers but you have no interest in that you just the money and the profits it is easy to lie like you may do i dont mind you made profit it is the name of the game …it takes a lot a poor for one billionnaire…

        • Comte de Monte-Crypto

          And what may seem to ya a big mount of money ? (here i put a sign so no spelling error to traumatized your sensitive being) well it is a little change in the over all picture of global economy now it is almost a year and you must need some more hey getting high on money gas ⛽️

    • Dalmazio

      I don’t see very many people thinking along these lines, but I think you are onto something. All we need to do is look at the gold and silver market as you alluded to, and the fine work of GATA (the Gold Anti-Trust Action Committee) who have proven that massive market manipulations do in fact occur in the gold and silver markets, with the express intent of exerting downward pressure on the gold and silver price. Futures, and other derivatives are a vehicle for performing this same price suppression function with any asset class, through massive leveraging. Definitely not tinfoil hat thinking.

      • sjs

        As you know, it happened again 2 days ago. $2 billion in silver shorts dumped to get the price down below $18 and keep it there. They have an inexhaustible supply of fiat and breaking the law is not an issue as the bullion banks are doing the Feds and Governments work. Noone will prosecute this. Better off in crypto trading, more diverse, liquid and not as controlled due to its global spread. No question that efforts are afoot in many jurisdictions to contain and control bitcoin etc but so far one can always divert to another country.

        • Dalmazio

          I’m not normally a fan of government regulation, but this is one instance where I’d love to see some “regulation” (perhaps “common sense” or “sanity” are better words here) that bans all futures and derivative products as the moral hazard and toxic waste products that they are, like the PBoC just did in mainland China re: Bitcoin.

          I’m beginning to think that Bitcoin may eventually pave the way for a free market in gold and silver. If everyone’s flocking to Bitcoin which allows people to circumvent inflationary government issued currency, then there may no longer be a reason to suppress silver and gold, and they may (eventually) be allowed to float higher to their natural price levels.

          • sjs

            I agree with your comment on banning derivatives, high leveraged trading and naked shorting, it should not exist. Gold and silver will never be allowed to ‘float’. Nothing less than the removal of the $US as the world’s reserve currency and use in world oil trading will restore gold. The Shanghai gold exchange is being utilised for precisely that purpose now as an in between medium for oil trades between Saudi Arabia and China and Russia and China where oil purchases are paid for in Yuan and these are then made convertible into gold in Shanghai. Only China, Russia and Saudi Arabia can make that happen. That is at the heart of the demonizing of Russia and China and in the meantime the gold goes East. The worlds financial systems are so bent out of shape there is no normalizing possible now just a steady movement towards the precipice, possibly this year.

    • Curt

      The gold shorts you refer to are done with paper contracts. No metal ever changing hands. I would hope the same manipulative practices can’t be done with BTC. How do you ‘dump’ BTC if you don’t have it to dump in the first place?

      • sjs

        Naked shorting? 23,000 silver contracts dumped last week and they never had the metal either.

        • Curt

          Yes, I understand naked shorting of precious metals. But how would someone naked short BTC? There’d have to be a group of people with deep pockets willing to buy/sell large quantities of BTC without taking actual delivery … and how would this be done in the blockchain as it exists today?