Why can a piece of news from the Chinese government affect the price of Bitcoin? - page 3.

DoublerHunter

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Quote from: thesmallgod on July 09, 2021, 01:30:35 PM

Such news as Cracking down on miners is not palatable. Maybe because you don't have idea of the influence of Chinese to bitcoin mining. According to statista, 65% of the world mining hashrate is from China. There have been numerous news that Chinese government is cracking down on miner, if the hashrate drop, rate at which transaction get confirmed also drops. Such news is not pleasant to here

^ Definitely right, because in China, there are large companies of BTC mining. That is not all about the news that affects BTC price, it is the action on China that makes BTC price shaken and also reduce because of the result in banning BTC miners which is hash rate drop that could have an effect.
However, with or without China, BTC will always grow its price and we don't care if China were banned BTC, later soon BTC's price will go up and recover. Nevertheless, there are some people there in China who still have BTC holding even it is banned.

fullhdpixel

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Quote from: lalabotax on July 09, 2021, 11:12:56 AM

it is always like generally. A big country will have bigger power and influence to something in concert. Like China, they are a big country with big power, moreover in mining Bitcoin. many miners are coming from that country. And when it is banned, it will really influence Bitcoin news. China is often offering FUD to crypto which makes the crypto market dropped suddenly and significantly. It is like almost every bullish trend, this country will create a certain ban in everything about crypto.

Not just many but massive amounts of coins are being mined from China and such a ban causes direct impact because all those miners would stop mining and will also look to sell their coins.

I don't think the impact is permanent though because we are already watching bitcoin recover and people did everything in their power to bring down bitcoin. Elon Musk announcing Tesla, China banning bitcoins and all the other big news combined were only enough to temporarily pull back the price a bit and now we are back to the path for the ATH.

thesmallgod

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Such news as Cracking down on miners is not palatable. Maybe because you don't have idea of the influence of Chinese to bitcoin mining. According to statista, 65% of the world mining hashrate is from China. There have been numerous news that Chinese government is cracking down on miner, if the hashrate drop, rate at which transaction get confirmed also drops. Such news is not pleasant to here

Silberman

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Quote from: Tim-BTC on July 06, 2021, 07:02:43 AM

On July 6, the Central Bank of China closed down a Beijing-based company that provides software services for virtual currency transactions, and reiterated that no institution within its jurisdiction should engage in such transactions.
After the People's Bank of China reiterated its long-standing anti-crypto stance and warned institutions not to provide services to crypto-related companies, Bitcoin cut its earlier gains.
Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?

No asset is completely immune to bad news especially when in the case of bitcoin there are countries with extreme stances and they are in fact using this to try to generate FUD and see if they can destroy this market this way, so when you understand this then it is easy to see that bitcoin is never really going to develop immunity to these kind of attacks, however as it becomes more popular and people understand its nature then the impact of this kind of attack will go down.

lalabotax

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it is always like generally. A big country will have bigger power and influence to something in concert. Like China, they are a big country with big power, moreover in mining Bitcoin. many miners are coming from that country. And when it is banned, it will really influence Bitcoin news. China is often offering FUD to crypto which makes the crypto market dropped suddenly and significantly. It is like almost every bullish trend, this country will create a certain ban in everything about crypto.

Oceat

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Quote from: Mpamaegbu on July 09, 2021, 07:43:40 AM

I remember how such negative news from China used to panic me in the past until I got to understand that what holds Bitcoin is the community and not a single whale or country. I believe those who still sell whenever there's bad news from China are weak hands who don't truly understand the mechanism of Bitcoin. Most retail traders and ignorant hodlers are guilty of this. Until traders begin to see China as JUST another ordinary country, they will continue to lapse into panic whenever China sneezes.

Well, that's a good thing if you are not driven by their black propaganda since this is always the usual way they will continue to do once in a while. I don't know if they still did something like this when the market is in bearish trend but all I know is that they usually release those negative news as if to create a fud whenever Bitcoin is in the bull run.

It seems that they wanted to manipulate the market by using their influence or so to make some profit once in a while. But regardless of what they may be doing they still banned miners operation on their country, perhaps they are true about it this time and it's not part of the plan.

BitTraderCute

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China has the highest population in the world so basically, China also has the most investors of bitcoin so whenever there is news regarding China related to bitcoin, it will affect the market, if there is bad news related to bitcoin then expect that the market will down and if there is positive expect a good chart in market.

CHina have biggest resources in cryptocurrency market, start from miner which is mostly located in China. So when they crackdown miners , the market will have negative response for it. its not enough to describe about china power, they still have policy and infinite fund to crack price in market.

Mpamaegbu

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I remember how such negative news from China used to panic me in the past until I got to understand that what holds Bitcoin is the community and not a single whale or country. I believe those who still sell whenever there's bad news from China are weak hands who don't truly understand the mechanism of Bitcoin. Most retail traders and ignorant hodlers are guilty of this. Until traders begin to see China as JUST another ordinary country, they will continue to lapse into panic whenever China sneezes.

ultrloa

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Quote from: Johnyz on July 08, 2021, 04:52:35 PM

Quote from: RokokGudangGaram on July 08, 2021, 11:30:04 AM

Perhaps the impact that the Chinese government news has made towards the price of the coins in the market can be interpreted how influential is China as a country. As it is said that majority of miners are from China, also with its population and the people who are being under their influence, the impacts that it can give to market price is somehow can be understood from here.

Despite of the hate to China, we can’t deny the fact that they have more numbers of crypto enthusiast, they have the miners and they have the people who appreciate technologies and cryptocurrency this is why the market always react every time we hear a news from China. This is just a temporary ban for sure, China did this before and when the time comes, they’ll accept cryptocurrency again as legal.

They are known to be the biggest hash rate in the world so expect that influence brings more people to be curious and believe if there's a news came out on their country, And despite all of that the banning will provably temporary as maybe they are just flexing their powers to the world that they are strong and want to dominate also on digital economy but if they cannot succeed with it for sure they will adopt bitcoin and accept it as legal unto their country but we don't know on when this one gonna happen.

Johnyz

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Quote from: RokokGudangGaram on July 08, 2021, 11:30:04 AM

Perhaps the impact that the Chinese government news has made towards the price of the coins in the market can be interpreted how influential is China as a country. As it is said that majority of miners are from China, also with its population and the people who are being under their influence, the impacts that it can give to market price is somehow can be understood from here.

Despite of the hate to China, we can’t deny the fact that they have more numbers of crypto enthusiast, they have the miners and they have the people who appreciate technologies and cryptocurrency this is why the market always react every time we hear a news from China. This is just a temporary ban for sure, China did this before and when the time comes, they’ll accept cryptocurrency again as legal.

jostorres

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Quote from: Tim-BTC on July 06, 2021, 07:02:43 AM

On July 6, the Central Bank of China closed down a Beijing-based company that provides software services for virtual currency transactions, and reiterated that no institution within its jurisdiction should engage in such transactions.
After the People's Bank of China reiterated its long-standing anti-crypto stance and warned institutions not to provide services to crypto-related companies, Bitcoin cut its earlier gains.
Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?

First of all I think we should look at how china has been a big part of the cryptocurrency community. They had a lot of miners who were part of the community and steady supporting all day, to the extent a lot of people even felt like Bitcoin is owned by the Chinese. So when a big part of something is affected, it hits badly. And that’s what’s happening with Bitcoin. Since has a strong community here, when their government decides to ban cryptocurrency, it affects the market a lot. But that doesn’t mean that it can bring an end to it, it can only affect the market for sometime and later it will still pick up.

geegaw

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Quote from: zanezane on July 07, 2021, 05:14:00 AM

Because China is influential in the cryptocurrency industry with them recently holding the biggest mines in the world and with that the hash rate of bitcoin, and thus when they do something related to cryptocurrency, then be sure that it will affect the prices. Not to mention that they have a big population.

China's sphere of influence is not confined to the crypto industry, their sphere of influence can affect different industries when their economies are claimed to be very strong and inclusive in terms of mining and manufacturing industries, moreover, the mining industry is relatively public in China and the recent sealing shows that the development level of this industry is huge in China, quite a few factories have migrated. Bitcoin may lose its stability in value but this is a joy for some people as mining activity is relatively smooth during this time.

RokokGudangGaram

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Perhaps the impact that the Chinese government news has made towards the price of the coins in the market can be interpreted how influential is China as a country. As it is said that majority of miners are from China, also with its population and the people who are being under their influence, the impacts that it can give to market price is somehow can be understood from here.

Renampun

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Quote from: Tim-BTC on July 06, 2021, 07:02:43 AM

On July 6, the Central Bank of China closed down a Beijing-based company that provides software services for virtual currency transactions, and reiterated that no institution within its jurisdiction should engage in such transactions.
After the People's Bank of China reiterated its long-standing anti-crypto stance and warned institutions not to provide services to crypto-related companies, Bitcoin cut its earlier gains.
Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?

The bitcoin price change will never be separated from negative/positive news because that is what naturally happens to an asset...

The Bitcoin market in China is quite large and the Chinese government is so strict with its citizens that they are afraid to violate it if they are still in the country. their psychology is disturbed when there is news like this, that makes a big sale and makes the price drop.

Tim-BTC

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Quote from: xSkylarx on July 08, 2021, 12:34:59 AM

I don't also get why this news from China can cause bitcoin's price to go down. It's like when they release news about bitcoin, media and people around the world panic to sold their bitcoin. They have been like that for many years now, bad news always comes from them yet they have the majority of bitcoin miners. If a country hates bitcoin, then what's the reason for those miners operating for many years now. Why people around the world are afraid that they always bring that big impact on the crypto market.

Why people around the world are afraid that they always bring that big impact on the crypto market.[/quote]

The reason is simple. The US economy is the largest global economy in the world today. The Federal Reserve (fed) formulates US monetary policy and sets benchmarks for global monetary policy. The world does depend on the United States. The importance of China in the world is growing rapidly, and they will participate in this discussion, but they have not yet reached the point where they dominate global monetary policy. This requires more time. In addition, the number of miners in China is large, and the attitude of the Chinese government determines where the miners will stay.

Tim-BTC

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Quote from: xSkylarx on July 08, 2021, 12:34:59 AM

I don't also get why this news from China can cause bitcoin's price to go down. It's like when they release news about bitcoin, media and people around the world panic to sold their bitcoin. They have been like that for many years now, bad news always comes from them yet they have the majority of bitcoin miners. If a country hates bitcoin, then what's the reason for those miners operating for many years now. Why people around the world are afraid that they always bring that big impact on the crypto market.

I am envisioning that if China says it supports it, the situation may be even worse. As long as it is not declared that holding Bitcoin is a crime, it should not be considered too bad news.
The news of the last few times has the same meaning as the news of previous years. I don't feel much about it, unless new investors will panic.

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Because many mines in the world are in China, when China issued a ban on mining, it had a great impact on the price of Bitcoin, but I believe that with the relocation of these mines, China can no longer control more When computing power, the impact on the price of Bitcoin will become less and less, and there are also many newcomers to crypto trading and investment in China. When they see the price drop, they will sell their cryptocurrency due to panic. The market price will fall. Whether it is China or the United States, the ban on Bitcoin by sovereign powers like this will have a series of effects on the market.

xSkylarx

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I don't also get why this news from China can cause bitcoin's price to go down. It's like when they release news about bitcoin, media and people around the world panic to sold their bitcoin. They have been like that for many years now, bad news always comes from them yet they have the majority of bitcoin miners. If a country hates bitcoin, then what's the reason for those miners operating for many years now. Why people around the world are afraid that they always bring that big impact on the crypto market.

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Quote from: zanezane on July 07, 2021, 05:14:00 AM

Because China is influential in the cryptocurrency industry with them recently holding the biggest mines in the world and with that the hash rate of bitcoin, and thus when they do something related to cryptocurrency, then be sure that it will affect the prices. Not to mention that they have a big population.

China does always make surprising news, this time by using its greatest strength as a bitcoin miner, China prohibits mining activities, and of course this has a big impact on the development of bitcoin. but I think this is only a problem for a moment, because it will soon grow back to normal, because on the other hand many people see this as an opportunity

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But wait, I thought the companies in China were already banned from doing crypto for a long time now for sure at least since last year. As OP itself says, central bank there already has longstanding anti-crypto position so why is this news?

Besides, negative news from China always affects. That's NORMAL. China and USA and everywhere, OP.

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