Topic: Does Central Bank really have impact on bitcoin? (Read 466 times)

In my opinion, the bank has absolutely no impact on bitcoin prices to reduce 100% even 1% is not, even the impact is his negative speech that will affect the price only a few%, to restore the market as before yes we all that Make it a reality.

Central banks are currently the dominant structure nations use to manage their economies. They have monopoly power and are not going to give up that power without a fight. While Bitcoin and other digital currencies have generated significant interest, their adoption rates are miniscule and government support for them is virtually nonexistent. Until and unless governments recognize Bitcoin as legitimate currency, it has little hope of killing off central banks any time soon. That noted, central banks across the globe are watching and studying Bitcoin. Based on the fact that metal coins are expensive to manufacture (often costing more than their face value), it is more likely than not that central banks will one day issue digital currencies of their own.

Bankers can't affect cryptocurrency. But that doesn't mean they're defenseless. Bankers sponsor the majority of politicians. Through them, they can lobby for any prohibitions at the government level. And it is dangerous. I think that the first blow will be dealt to the ban on the exchange of cryptocurrencies for Fiat. But this is only if the bankers declare war on cryptocurrency.

Central banks have a voice through the media and can sway public opinion with this platform. I think this is one factor that makes cryptocurrencies unattractive to some people when they hear negative comments from big bank executives about Bitcoin and other cryptocurrencies. It will take time to sway public opinion and to make them truly understand the importance of cryptocurrencies.

I also think that there may not be any impact of central bank on bitcoin. Bitcoin is  decentralize currency, therefore it is not under influence of any country, bank or under any country. Bitcoin is decentralized anonymous currency and hope that it will remain as free from the influence of any state or bank, we can hope that bitcoin remain in its congenial stage forever.

Central banks or any other bank does not have any kind of control on it and i think they cannot affect the bitcoin prices directly. But yes they can be a headache to the Cryptocurrency users by modifying the Exchange rates, terms & conditions while exchanging the Bitcoin and other crypto coins with the Fiat currency, which can lead in creating some impact on the bitcoin prices for sure. And yes there is no speech that can affect the bitcoin prices like BOE, Federal Reserve, but we can create the panic selling or buying by spreading the Rumours and doubts in the mind of the traders.

It has nothing to do with the bank because there is no bond with bitcoin, because the movement of price changes is real by itself whether there is no demand and whether there is a news sentiment that exists today, it could change the price of bitcoin, surely you also know that.

The governments certainly can pose huge impacts to the crypto markets through outright banning, taxation, regulations and FUDs. Anyone can also see the potential disruptive effect of cryptos to FIAT economies, so don't expect the governments to cede their control without a fight.

They have an impact when they people removes their money and puts it on crypto but for now, people manage to have in banks and crypto at the same time the much affected is the stocks exchange of the countries not that bank mostly.

The Bank of Europe is a very influential bank and has a very big role to play. Many traditional fiat users listen to whatever is said from there before they make a move to invest their money. If the BOE makes any fud on cryptocurrency, it automatically draws some investors from that region back from investing. Yes, banks have impact in bitcoin and they are in a serious fight with it.

Logically it has no impact because bitcoin is decentral and he stands alone, but if we think broadly it greatly affects because the user's interest in the crypto is influenced by the news especially if the cetral bank gives a good or bad speech about the cryptocurrency it definitely affects the movement, this is a speculation of my own.

Due to that news and FUDs that are coming from banks in different countries stating that they will ban or regulate the use of bitcoin, it creates panic on people so in result, most of them are selling their fair share of bitcoin while they can see some profits before its too late for them to sell out and wait months before the price recovery. So banks affect the price of bitcoin one or the other.

Actually no central bank able to give impact to bitcoin, but the central bank able to drive people away from investing in crypto, so no matter what news the central bank announced, if the users and investors stick together then central bank can't do anything, but most of the time the newbie investors got trapped with the news and doing panic sell and causing the market instability

There are no bank can be able to affect to price of Bitcoin or other cryptocurrency ). If it were before, I think people would feel panic when any bank publish that they're going to ban Bitcoin and all other cryptocurrencies in their country but for now, it's useless when any bank publish that kind of news ). The only one can impact the price of Bitcoin and other cryptocurrencies is the whale

They're probably warning people to be wary of people hyping pyramid schemes and HYIP using crypto, not warning that crypto itself is a pyramid scheme. Based on the amount of scamming going on and the amount of money dumbly chasing get rich quick schemes, the warnings are completely justified. There's still a dearth of regulation, and there are far too many people taking advantage of susceptible folks.

I think central bank really does not affect the bitcoin price, if the government or a country is against bitcoin, I think it might have an impact on bitcoin prices. But for now, I think there's just a dumping done by the whales out there, and now I see prices can be stable at 9k$.

The perception of the people changes when some regulatory body gives some comments or their statement on virtual currency . If it’s a positive the price set to rise and vice versa . If ever the green signal given by this authorities will help the community to grow with More people joining it .

It might not have an direct impact to Bitcoin but they can manipulate the users. How? We all know that the rates of Bitcoin depends on the supply and demand, Central Bank and other well-known banks could spread a FUD not to destroy's Bitcoin's reputation but to disrupt the users mind to have a panic feeling. In result there's a high chances for these users to sell their coins. Going back to the supply and demand law, High supply + Low demand = Price/s depreciate and when the price depriciated this would be time that this sharks will buy huge amount of coins and withdraw their claim and again state something good about Bitcoin. Which in result a High Demand + Low Supply = High price or rate. Basic attack but effective.

Thanks everyone! looks like most of the concerns are indirect effects such as people's expectations and sentiments and direct effects are mostly regarding closing of exchanges and accounts! it is important to place different weights to their actions then!

It might be possible that central bank doesn't have impact on bitcoin, but at least it has impact on people's opinions. So, in a way, it has impact on bitcoin price.

I don't think somebody or group of people is responsible for bitcoin's status. It's the demand of people that defines bitcoin's market price because if the demand of people gets high, the price also gets high and vice versa.

The central bank is responsible for the country or the area (such as the European Union) monetary policy body, the central bank for Banks and other financial institutions also have supervision, to ensure that they don't rush or cheating.

If the central bank really prohibits the bitcoin platform from opening an account in a bank, then there is no way to trade digital money online, only in private transactions, and there will be a big crisis in the digital money market!

These speeches can cause mass manipulation of the certain group of investors. That group can be easily influenced by the media false rumors which are controlled by the government which on the other hand control the banks. Bitcoin cannot be controlled manually but with the smart manipulation people can be frustrated and the demand can lower itself for some time.
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Many have tried to destroy the Bitcoin with the false rumors and attempts for control but like we can see - Bitcoin still stands. Its value is not high as in December last year but I sincerely hope that this year will bring us the better movement of the price. People have learned something from this influences of the false speeches and that is to resist the criminal attempts to move society away from the Bitcoin. Banks should stick to their centralized field and not interfere in the decentralized blockchain that is opposing them in every way.

Not necessarily. Whales don't control Bitcoin and they can affect its price. That being said, there are plenty of things Central Banks can do to hurt Bitcoin if they wish. We've heard of banks closing exchange accounts and accounts associated with cryptocurrencies. Legality aside, if they were able to completely isolate crypto from the traditional banking system, we'd have a massive problem on our hands.

Words tend to affect crypto price too, so if they launch a serious enough tirade, they may be able to cause a small slide. Similarly, Good word such as future plans of integration could spark rallies. It's sad to admit, but Bitcoin isn't large enough to be free from central banks' influence.

That is one of the problem that banks are creating nowadays for the people interested in bitcoins and other cryptocurrencies. Banks nowadays are blocking the access of their credit cards for any purchases made of cryptos. This has stopped many users from buying cryptos using fiat currency.

Banks sometimes even halt withdrawals and deposites on exchanges and sites involved in bitcoin and other cryptocurrencies. This creates problem for investors that are looking to trade in cryptos using fiat currencies.

I think that by now every central bank has its own opinion about crypto currencies and most of them are not too good.
But I think as well that their opinion does not influence the bitcoin price a lot.
Central banks are usually too far away from the peoples lifes so that a statement from them would really influence the buy/sell decision of a normal person.
Most people actually don't have a much sympathy for central banks themselves. So warning statements from these institutions could have the opposite effect they were intended to have.

That’s true. Bitcoin cant be controlled by government, media, central bank or any large financial institution but it can be somewhat manipulated in price as these have major impact on the minds of the people. Decentralization is the main concept on which maximum cryptocurrencies are built. This makes the transactions more fast, more secure and reserves the privacy of the sender and the receiver. Bitcoin is a complete alternative that can replace banks whole system in near future therefore bank are scared of this and usually create FUD about crypto assets.

Many central Banks are keeping a close eye on bitcoin.

In theory, Banks cannot stop bitcoin.

All the central Banks in the world do not support or refuse to use bitcoin in the country.

According to me central bank of countries have zero to very little impact on the prices of the cryptocurrencies cause cryptos are held by people worldwide and not controlled by some central bank or the government. As long as people hold firm grip on crypto and don’t get manipulated by the government or central bank there are usually no fluctuations in the price of a particular coin or the total market cap.

The speeches are being given by the central banks about cryptos past 3-5 years, but still crypto market has had steady and healthy growth which shows that there is no manipulation by them.

I agree to the fact that central banks don’t have much impact on crypto price. But government and specially media and newspapers have significant impact on the prices of cryptocurrencies. FUD spread by media usually is the reason for mass sell off caused by the people that causes massive drop in overall coin market cap. When the time comes where people are not so easily manipulated by the media or central bank, that day neither central bank nor media will have  hold on bitcoin and other cryptos prices.

The central bank might not have any control on the price of bicoin but you have to consider that the price of bitcoin move according to the news related to it and we have seen that in the past and that is literally going on now and that will be the case in the future too,when the price was on a big rally we did not hear any negative news but then the negative news starting coming in the price went down.

Central bank do not have control over crypto, thus it doesnt affect its price. Cryptos price is directly influenced by its supply and demand. But with their announcements about the upside and downsides of cryptos such as security and financial risk, it affects how crypto holders decide on how to use their cryptos, resulting to some changes on its supply and demand which has a direct effect on its price.

Probably not the speeches themselves, but the way the media portrays it and paints that picture has likely to do with impact on Bitcoin. It sucks that they have this much impact but because the average investor is public and retail and they read those sources it becomes a self-fulfilling prophecy.

The direct influence of the Central Bank on cryptocurrencies is difficult. That is why they try to do this by trying to regulate with governments, obstructing the use of cards or warning against the use of digital currencies.

They can definitely do something about the price with their announcements - and profit from it if they chose to. But short of these and regulations, they can't control it directly. It is after all, still heavily affected by demand and humans can be fairly unpredictable.

Yes in some way, not by just the word released by the central banks of other countries, some banks put limit how much you withdraw per day per week or per month for everyone not to cash out at one time, haha the bank will be left empty, and some report other people who withdraw big money for money laundering to threaten others....

Any action by the CBN have a way to influence bitcoin price but the extent of that influence depends on what is being done. If its by speech of CBN reps, it won't have much effect or a temporary one and even in my country, the Central Bank has issued a memo warning everyone against bitcoin but still bitcoin and crypto generally is still popular and continue to generate influence among the  youth.

If they then decide to go with actions and willing to go the extreme among which would include, banning of exchange accounts, compelling banks to stop making international transfer as it relates to cryto, transfer between customers within the same country with any notation of crypto, that would have effect on bitcoin price but because whether we admit or not, the banking industry has been a propelling tool for crypto.

The advantage of bitcoin over fiat currency is that it is decentralized . It is not control by any body organisation or government of a country including central bank

If bitcoin depend on Bank, it will broke decentralized paradigm as it being control by the bank


Yes, because bitcoin can't be control so government is afraid if they can't control bitcoin , how they can responsible for what happen on people if something bad happen on bitcoin usage.

There are no banks that have an impact in cryptocurrencies right now. Only people's mind and it's creator are the ones who can manipulate cryptocurrencies. Banks don't really advise cryptopcurrencies in their countries. Also cryptos has their own system and only them can influence their own.

No, Central Bank doesn't have any control on Bitcoin. But I think that they can have some influence on it. For example, if they try to make people fear cryptos.

Think of the Central Banks as regulators of the flow of money within the economy. They along with a set of research panelists decide whether new instruments of trading, new modes of online payment or any form of money that could be sold within the country to be regulated by some form of statutory body or a set of KYC/AML procedures to be implemented. This is what the central banks in certain countries are doing. They receive information from either the Ministry of Finance or decide to regulate cryptocurrencies. Regulation may be in the form of collecting identities of individuals selling or buying cryptocurrencies so that money laundering can be curbed and also decide the taxation structure with the taxation department (Depending from country to country).

Keeping these in mind, think that when a Central Bank passes a law to ban or regulate Bitcoins in a way that it restricts Cryptocurrencies to be used as a legal tender, then yes this could have a negative short term impact on the price of Bitcoin. We've noticed several instances of this with China and Indian central banks decisions affecting the price of Bitcoin negatively. Similarly if a central bank announces crypto's to be used freely as a legal tender and exchange (Like Japan and Germany) then there's positive news and market sentiments start to kick in and the price goes up. So, yes I believe that alteast in the short term, the Central Bank's decisions do matter and may directly or indirectly affect the price.

I guess the statement of the Central Bank has an impact on the aggregate economy of Bitcoin. Without the approval of the World Bank all the Central Banks in the world does not support nor decline the use of Bitcoin in the country, but this support has a great impact for all since this becomes one of their basis on joining crypto currency for it simply legalizes the use of it.

See first we need to understand that banks do not have any direct relation with the crypto-currency price index. But Central Bank being a strong financial institution of the country directly affect the country economy so speeches and statement Issued by central banks have indirect Relation with crypto.

Your title is different from your question, please don't post this kind of clickbait in this forum.

First, Bitcoin (in theory) is a decentralized, open, borderless, trustless, and censorship-resistant currency. Banks cannot stop bitcoin.

Where

Second, Bitcoin is like any other commodities, its price also affected by sentiments i.e. government comments/policies.

To date, many central banks are closely following Bitcoin's development. But banks doesn`t have impact on Bitcoin. Quite the contrary. Вitcoin can potentially interrupt the ability of central banks to control the economy, as well as give out money. In fact, if bitcoin becomes a global phenomenon, all people of the world will use it, then the need for banks will disappear by itself.

At present the central banks can only have affect on price of bitcoin by creating FUDs regarding bitcoin. But there is no direct relationship that btc and any of the central bank share together. Nor there will be such a relationship in future. Controlling bitcoin is certainly impossible. But yes its needless to say that bitcoin just like any other stock does get some effect on its price with news.

It's not about the direct effect of central banks but indirect effect of the speeches that they make. Even if these guys sneeze then whole crypto currency catches the cold and that is how it is working since last year December. These are the peak peeiods since when the news Fud started from the banking system. This is just because of negativity that they create though such news. The media also boosts these things in different way and thus push the panic stuff through crypto lovers and there we see the dropped prices. So yeah they do affect it.

So will it be in the case if users will be able to abandon the use of Fiat. But now it is impossible. The demand for money is largely determined by the ability to easily exchange for Fiat. Banks can easily stop exchange operations. I am sure that after that the price of bitcoin will decrease as much as possible.

If his speech obeyed by a fool may be Yes! the impact will be felt and inhibit price movements (degenerate) but no for them (professional crypto users) because they will consider it this is FUD created by the BOE.

Statements by central banks MAY have a very short term affect on BTC
but it would if any be only short term, we have seen this in the past where
statements by banks and financial people with influence has affected the
performance of BTC negatively, but it always just bounces back and recovers.

They do have an impact on bitcoin's price and on the path between bitcoin and fiat, but they don't have an impact on the actual network and they can't prevent you from releasing transactions in any way.
The whole idea about bitcoin is that it is decentralized, there is not a central bank or any big organization, doesn't matter how strong they are, that can actually kill or destroy the blockchain, or set new rules.
In order to set new rules they would need the major hash rate of the bitcoin to accept the change.

No central bank and bitcoin don't have any direct relation with bitcoin. But there may be indirect causes that may or may not impact the bitcoin. Bitcoin's price is impacted by the demand and supply forces. That's the basics, if you go too deep, you'll end up confusing yourself.

Central banks are trying to have a bad impact on bitcoin. I have read some news that some countries are warning their citizens to not invest in bitcoin as it is a pyramidal scheme or a HYIP. However the Central Banks cannot really impact bitcoin  because bitcoin is a decentralized currency which is controlled by no one, it has no central authority.

The fluctuations in Crypto are unlikely to be controlled, but there are still a lot of people who are fortunate enough to succeed in the Bitcoin market. The top and the top are Bitcoin, the king of virtual coins. Bitcoin is widely believed to be influenced by a lot of places, but Bitcoin's actual development or agility is not related to anything.

I agree that this is the main problem within some countries. When the bank closes the circulation and exchange of the Bitcoin to the FIAT some of the investors are being left desperate. They are then thinking about another solution of withdraws. In most cases, this kind of investors is depending on the Bitcoin because this is their income for their living habits. They are losing a trust in Bitcoin slowly after that situations and also thinking about other solution of earning money. Bitcoin doesn't fall in the eyes of the investors but the banks do and the anger that grows in every investor that is influenced with the bank movements is pointed towards the central banks and not the Bitcoin.

Cryptocurrency going to ahead of it's own way as decentralized! bitcoin also! any government can't control bitcoin ahead of by their own power, they are just ban bitcoin for their own countries. not can control.

The price of cryptocurrency can be manipulated by banks in two ways, the first is by launching all kind of roomers or taking an official stand related cu crypto, or as an active investor with big capital.

Banks can not influence the price of bitcoin in any way. But they can create big problems for all cryptocurrency users. In their power to prohibit the operation to exchange cryptocurrency for Fiat and back. Such actions can significantly reduce the popularity of the cryptocurrency. This will inevitably lead to a drop in the prices of this asset.

No one is controlling the price of crypto currencies but people's minds can be manipulated by spreading positive and negative news about crypto currencies.So the price movement will also be according to their rumors.But banks don't have that much impact on the bitcoin price in my opinion.But if media spreads that news too much then it will have a big impact.

are the price movements related to those speeches of the central banks such as the BOE?