Just another day in the Bitcoin market...
Exchange x stopped deposits in y currency?!?!
This means that the price should go down artificially on that exchange.
I think everyone else will dump because they think everyone else will dump because of this news.
Panic sell!!!If I understand it, a ban in China is not like shutting BTC-E down. It would prevent the whole country from being able to invest in Bitcoin. If BTC-E goes down, people can just move exchanges. This should cause a massive devaluation of
BTC unless we happen to end up in another hype cycle (or, deposits come back)
I really dont believe the China ban is "factored in". Much like Gox, and countless other things that were 'already' factored in.
The price seems to be only factored in if the confirmation ends up being more or less materially the same as the rumor.
Otherwise further price adjustment may need occur based on the confirmation of the rumor.
On the other hand, if the confirmation of the rumor ends up being exactly the same as the rumor.. then it seems very likely that the market would have already mostly accounted for that news based on the rumor rather than the confirmation of the rumor....
I think that is the general rule... but of course there can be exceptions to any rule or a failure to fully appreciate the significance of the rumor until after the rumor is confirmed.
