Bitcoin price crashes as Chinese Vice-Premier crack down mining, trading

aoluain

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Quote from: sheenshane on May 21, 2021, 05:43:10 PM

Quote from: aoluain on May 21, 2021, 03:47:07 PM

We have seen this before, Bitcoin's price reacts to news from China...
and the price recovers many times over.

It seems they're just a part of those big players in the crypto market.
IMO, the Chinese government is only proving that they really are control freaks, they want things under their control, even when the consequence of that is to ruin other people’s labors.

Imagine miners who just established themselves and just invested their earnings for the rigs? What does their government think would happen to them now? They can’t use the sudden decrease of the value as the reason why they want it banned, the truth is that they are planning something that would soon be published globally. They shouldn’t expect that our community would support that. Never ever.

They try to find things to blame so they can execute their agendas well. But I don’t think that would be the result, they will regret their decisions with Bitcoin in the future I can tell.

I agree.

I turned off notifications on Twitter a while back because I was being bombarded,
now I only go there if I need an update.

I purposely checked in on Michael Saylor's feed to see what he posted about
this move from China, and interestingly he posted the below, which is very optimistic.

It seems from this that leaving China behind wont necessarily be a bad thing.

Quote

A crackdown on miners in China would radically reduce the carbon footprint of Bitcoin mining, increase the profitability of all the remaining #Bitcoin miners, reduce nagging China FUD, support progress toward our ESG goals, & drive up the value of $BTC. We should be so lucky...

Lorence.xD

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Quote from: The Cryptovator on May 21, 2021, 03:19:04 PM

It wasn't a threat to China's economy but don't know why they decide that. Crypto ban is quite impossible because my country bans crypto but still, I am using Bitcoin and trading as well. Just government losing tax. The same thing will happen in China. Somehow traders will find the way how they should trade. So don't panic, just hold and watch.

Their development of the digital Yuan might be the reason why they want to crack down on bitcoin, they don't want people to have the choices as to which one they are going to use, they are copying the best of bitcoin and adding surveillance in there so they can track everyone.

chaoticmayhem

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40% of Bitcoin miners are based in China. I guess nobody saw this coming. Roll Eyes

sheenshane

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Quote from: aoluain on May 21, 2021, 03:47:07 PM

We have seen this before, Bitcoin's price reacts to news from China...
and the price recovers many times over.

It seems they're just a part of those big players in the crypto market.
IMO, the Chinese government is only proving that they really are control freaks, they want things under their control, even when the consequence of that is to ruin other people’s labors.

Imagine miners who just established themselves and just invested their earnings for the rigs? What does their government think would happen to them now? They can’t use the sudden decrease of the value as the reason why they want it banned, the truth is that they are planning something that would soon be published globally. They shouldn’t expect that our community would support that. Never ever.

They try to find things to blame so they can execute their agendas well. But I don’t think that would be the result, they will regret their decisions with Bitcoin in the future I can tell.

aoluain

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Ah how many times have we heard about China in relation to Bitcoin?

2013 > https://www.techinasia.com/timeline-history-bitcoin-china-2013

Quote

When the value of bitcoins skyrocketed to more than $1,000 each in December, a government ruling was inevitable.
No one was really sure which side the state would come down on, and the result took a heavy toll.
When the government ruled that bitcoins could not be used as legal currency in China,
prices went into a freefall to less than $500 per bitcoin from a peak of almost $1,150 within two weeks.
They’re now at $761.

2017 > https://www.cnbc.com/2017/09/11/bitcoin-price-falls-on-reports-that-china-is-closing-local-exchanges.html

Quote

The latest reported crackdown follows a decision by Chinese regulators – including the People’s Bank of China (PBOC) –
to ban initial coin offerings (ICOs). ICOs are a means of raising funds by selling off new digital tokens.
A crackdown on ICOs would not affect the original cryptocurrency directly,
but bitcoin still dropped more than $1,000 over a period of three days.

2019 > https://www.investopedia.com/news/bitcoin-banned-china/

Quote

Updated Jun 25, 2019

Earlier this month, the People's Bank of China (PBOC) which is the central regulatory authority that regulates
financial institutions and drafts the monetary policy of the country, issued a statement that “it would block
access to all domestic and foreign cryptocurrency exchanges and ICO websites.”

We have seen this before, Bitcoin's price reacts to news from China...
and the price recovers many times over.

I have given more research into this post than the latest news article because in
the long run it doesnt make any difference.

BIT-BENDER

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Quote from: dothebeats on May 21, 2021, 03:04:50 PM

It's as if the market never matured at all. For years, crypto-related news from China were no longer making ripples on the prices, but apparently it somehow reignited. The fact that the price is already tanking, it's making me think that we might see sub-$30k levels sooner. The volume on exchanges is weak, and no huge buy orders can be seen. It can only lead to more and more drop IMO.

As for Chinese miners, it's best to leave the country and mine somewhere else. A communist country would make sure that they will always have something in store for themselves at the expense of their own citizens.

Although most Bitcoin-er will still preach the hodl sermon, -i believe holding is imperial- but with the way the market is swindling to external Forces/condition is scary, in my country the social media is shaking with bitcoin drop, even those with no bitcoin, this only causes more tension/panic, which is a defective transition for bitcoin, I fear for the outcome of global adoption, would this cause global Panic sending shock waves around the world when a bad news is spread, or bitcoin is falling.

blockman

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IMHO, this will never stop until the hidden agenda that they're doing will be fulfilled. With all of that news about cracking down, energy consumption, and banking, aren't these reported and on the news once or a quite times a few years ago about bitcoin? It would always be the combination of this news and they're the ones that are making their pockets filled. They know that putting such news in the mainstream will actually help them with their agenda to spread fud and sell and then buy the dip. If there's another negative news and about criticizing the market, you'll see that the market will recover as quickly as it can.

Quidat

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Quote from: dothebeats on May 21, 2021, 03:04:50 PM

It's as if the market never matured at all. For years, crypto-related news from China were no longer making ripples on the prices, but apparently it somehow reignited. The fact that the price is already tanking, it's making me think that we might see sub-$30k levels sooner. The volume on exchanges is weak, and no huge buy orders can be seen. It can only lead to more and more drop IMO.

As for Chinese miners, it's best to leave the country and mine somewhere else. A communist country would make sure that they will always have something in store for themselves at the expense of their own citizens.

Even if we do say that this had been a typical events back in the past where the market had badly been affected and its true that its been reignited as of this year which did really make
out some relevant effect on where we do see the market had really go down and same as you mentioned that this might be going even more lower and that wont be surprising.
It turns out that these China decisions are somewhat obvious that theyre trying to surpress the market for them to buy cheaper coins and when the right spot hits out
then we would be seeing several numbers of positive news again ex. lifting up the ban and starts to accept again. Normal manipulation moves.

The Cryptovator

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When bear news starts coming out then it's all come together. And of course panic seller ready to dump Bitcoin price. However, the effects will remain for a few days and traders will forget about that news. So the market will be stable once again. I strongly believe whoever has a mining farm in China will move to some other crypto-friendly countries where electricity bills are affordable. It wasn't a threat to China's economy but don't know why they decide that. Crypto ban is quite impossible because my country bans crypto but still, I am using Bitcoin and trading as well. Just government losing tax. The same thing will happen in China. Somehow traders will find the way how they should trade. So don't panic, just hold and watch.

Fortify

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Quote from: Leviathan.007 on May 21, 2021, 02:54:01 PM

The BTC / USD pair fell in response to a headline made by the Chinese Deputy Prime Minister. "Financial risks will be firmly avoided and controlled"
As a result, Bitcoin fell to the price level of $ 36,309. The senior official added that Beijing will crack down on bitcoin mining and trading activities, and those who engage in illegal financial activities in this area will be severely punished by the government.
Earlier this week, Chinese officials criticized crypto assets, causing a sharp fall in cryptocurrencies. Prices had previously fallen by changing Tesla's behavior and not accepting it as a means of payment. In addition, the company's chairman, Elon Musk, caused the market's biggest cryptocurrency to fall, but he later helped improve the market by announcing that the company had not sold its assets.

Source: https://www.fxstreet.com/cryptocurrencies/news/breaking-bitcoin-tumbles-as-chinese-vice-premier-liu-vows-to-crack-down-on-mining-202105211432

People tend to forget that most mainstream investments make 5-10% per year, if you leave your money in a bank account in most of Europe/America/UK where currencies are relatively stable then you might be lucky to find an account paying 1% interest per year. Bitcoin started this year around the $21,000 price mark, if it were to end this year at a price of roughly $23,000 (10% up) then it would be beating most mainstream investment returns, at the current rate it is still up over 50% which anyone who has been in finances long enough will tell you is still an astronomical return for an asset - not even factoring in the peak where you could have sold it for much more. Beyond that, we have to remember that more and more bitcoin is getting lost each day (through naturally abandoned dust and wallets abandoned for all sorts of reasons) which can be a counter weight to bad news stories in the long term. As long as Bitcoin can keep it's anonymity in future then it will be hard to ever crack down on it completely.

dothebeats

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It's as if the market never matured at all. For years, crypto-related news from China were no longer making ripples on the prices, but apparently it somehow reignited. The fact that the price is already tanking, it's making me think that we might see sub-$30k levels sooner. The volume on exchanges is weak, and no huge buy orders can be seen. It can only lead to more and more drop IMO.

As for Chinese miners, it's best to leave the country and mine somewhere else. A communist country would make sure that they will always have something in store for themselves at the expense of their own citizens.

Leviathan.007

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The BTC / USD pair fell in response to a headline made by the Chinese Deputy Prime Minister. "Financial risks will be firmly avoided and controlled"
As a result, Bitcoin fell to the price level of $ 36,309. The senior official added that Beijing will crack down on bitcoin mining and trading activities, and those who engage in illegal financial activities in this area will be severely punished by the government.
Earlier this week, Chinese officials criticized crypto assets, causing a sharp fall in cryptocurrencies. Prices had previously fallen by changing Tesla's behavior and not accepting it as a means of payment. In addition, the company's chairman, Elon Musk, caused the market's biggest cryptocurrency to fall, but he later helped improve the market by announcing that the company had not sold its assets.

Source: https://www.fxstreet.com/cryptocurrencies/news/breaking-bitcoin-tumbles-as-chinese-vice-premier-liu-vows-to-crack-down-on-mining-202105211432

Topic: Bitcoin price crashes as Chinese Vice-Premier crack down mining, trading (Read 66 times)