Topic: [2017-09-09] Bitcoin Price Recovers, Chinese Exchanges Not Being Banned (Read 321 times)

Damn. So its really fake news. But the problem is that the damaged is done already. Many nervous investors already dump their coins pulling the price back to $4200 again. But yeah, usually during weekends the market is quiet with few major orders. But I hate that the news causes panic, and now those who have sold already and read this news will surely regret their decisions. Oh well, that's life.

I am sad to realized that unconfirmed reports can easily be affecting the value of Bitcoin. Well, this is really a weakness of all markets we have...rumors can easily lead to unwarranted decisions and then within minutes the market can be in panic. Right now, even if it is already known that banning exchanges might not happen at all, the value of Bitcoin has not yet recovered...but since it is already the weekend where demand can be weak we might expect Bitcoin to be back surging in the next few days though it might not be possible for it to go beyond $5,000 and might just be staying at $4,400- $4,500. 

After all, according to the three largest Chinese bitcoin exchanges OKCoin, Huobi and OKCoin themselves, China-based cryptocurrency trading platforms are not being banned by local financial regulators.

Earlier today, on September 9, state-owned financial news publication Caixin reported that the  Chinese government is planning on shutting down bitcoin exchanges within its local market. Bitcoin expert and Blockstream Chief Strategy Officer Samson Mow clarified that Caixin failed to provide any relevant sources in regard to its report and that it is likely not true. However, many analysts suggested the possibility of Caixin obtaining insider knowledge from Chinese financial regulators, considering its connections to the government.

Whether the report originated from an insider source or was simply not a factual report, OKCoin, Huobi and BTCC denied receiving directives or requests of any sort from PBoC and local financial regulators. More to that, in an announcement published in online bitcoin communities and Chinese social media platforms, OKCoin, Huobi and BTCC reassured their users that they have always successfully complied with the government’s requests and policies regarding bitcoin and cryptocurrencies.

A statement from OKCoin translated by CnLedger read:


In essence, the three largest bitcoin exchanges stated that the government has clarified on the legality  of bitcoin in the beginning of 2017 and as a result, bitcoin exchanges should and will not be shut down by local regulators. Furthermore, OKCoin emphasized that the company along with other trading platforms have strictly complied with the requests from the government.

Initially, upon the release of Caixin’s report, bitcoin price plunged to $4,075 within hours. Almost immediately after the statements of the three bitcoin exchanges were published, bitcoin price recovered swiftly to $4,310 in a single day.

Over the past few days, bitcoin has demonstrated strong resilience towards the Chinese market and the government’s ban on initial coin offerings (ICOs). Even after the Chinese government’s declaration of ICOs as an illegal fundraising method and bitcoin price dropped by $500, it recovered to $4,550 within a 24-hour period.

But, as Mow explained, ban on bitcoin and other cryptocurrencies by the Chinese government is having less impact on the global ecosystem than it did a few years ago. Mow went as far to explain that if China does ban bitcoin and its local exchanges, it will not work on bitcoin and it will continue to sustain its upward trend.

said Mow.

https://www.cryptocoinsnews.com/bitcoin-price-recovers-major-drop-chinese-exchanges-not-banned/