There is every probability that countries with capital controls will adopt a negative stance towards bitcoin(China). In those countries bitcoin will be highly sought after for exactly that reason, to escape capital controls. In countries that adopt a more liberal stance, we are just seeing the beginning of the spread of bitcoin as a useful currency. The fact that China didn't act to shut down the exchanges is big in my opinion.
Also, all during the run up, the bears were saying that volume in China was fake, and therefore China was not a factor. Suddenly now, China will be the end of bitcoin?
The news was not bad - China will not be the end of Bitcoin, no.
Sentiment will decide ALL unless 'utility' overtakes 'store of value' as a reason for growth. Store of value and speculation is all there is so far.
What is priced in is future utility value and sentiment is the pricing factor in this.
It still is what the market believes it will become, and not YET what it actually is.
I think it will - that is why I am here - but disasters in the market can change things. The exchanges must be fluid, accessible and trustworthy for it to grow to where (most of us) want it to.
Who wants to risk losing it all if they are buying in now? The price is supported by hope and more importantly trust. Exchanges must prove they are worthy of it.
