Topic: Why can a piece of news from the Chinese government affect the price of Bitcoin? - page 4. (Read 592 times)
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.
July 07, 2021, 04:32:00 AM
This news did not affect the price and the price of Bitcoin did not decrease because of it. The price of Bitcoin is now stable and the reason for the current fluctuations is due to supply and demand, which makes the price fluctuate in the range of 5% and sometimes up to 10%.
News from China is often false and inaccurate, and even the real ones do not affect the price.
The way we view the price and the news channels try to link the changes to the price is an attempt by them to get free views or hot titles only.
News from China is often false and inaccurate, and even the real ones do not affect the price.
The way we view the price and the news channels try to link the changes to the price is an attempt by them to get free views or hot titles only.
July 07, 2021, 03:56:51 AM
I think one thing we should understand is that, negative and positive news from high profile individuals, companies or government have always been one of the main drivers of the financial market, negative news has sometime and still affects other financial markets like forex, stocks, etc, this is to affirm that negative news impact on prices of assets is not limited to bitcoin alone, and this is not entirely bad, cus the negative news always create a buy opportunity for true believers who then sell for good profit when the positive news comes and prices go up.
And for when China's negativity on crypto will loose its effect on bitcoin, truth is that no one can tell, but since China have outrightly banned bitcoin and everything relating to crypto currencies in their country, it's only a matter of time before their negative stance on crypto stops affecting the market.
I really hope that China will be more positive. And for when China's negativity on crypto will loose its effect on bitcoin, truth is that no one can tell, but since China have outrightly banned bitcoin and everything relating to crypto currencies in their country, it's only a matter of time before their negative stance on crypto stops affecting the market.
Cryptocurrencies are being adopted more widely across the world, and different countries need clearer regulatory frameworks.
In my opinion, more supervision is a positive signal.
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July 07, 2021, 03:43:57 AM
I think one thing we should understand is that, negative and positive news from high profile individuals, companies or government have always been one of the main drivers of the financial market, negative news has sometime and still affects other financial markets like forex, stocks, etc, this is to affirm that negative news impact on prices of assets is not limited to bitcoin alone, and this is not entirely bad, cus the negative news always create a buy opportunity for true believers who then sell for good profit when the positive news comes and prices go up.
And for when China's negativity on crypto will loose its effect on bitcoin, truth is that no one can tell, but since China have outrightly banned bitcoin and everything relating to crypto currencies in their country, it's only a matter of time before their negative stance on crypto stops affecting the market.
And for when China's negativity on crypto will loose its effect on bitcoin, truth is that no one can tell, but since China have outrightly banned bitcoin and everything relating to crypto currencies in their country, it's only a matter of time before their negative stance on crypto stops affecting the market.
July 07, 2021, 02:22:48 AM
It's not just negative news from Chinese government, negative news from anywhere including the US can affect the price and this doesn't happen only to Bitcoin only. I happens to other tradable assets too such as stocks, commodities etc. Markets always react to news as traders look to make some quick profits or look for opportunities of buying dips.
It may worth mentioning that this is so much visible for Bitcoin and crypto markets only because there the price fluctuations are usually/normally much wider, in both directions.
I don't know though what could make Bitcoin's price daily variation stay within much smaller range. Removal of stable coins maybe? Or more institutional money locked in?
July 07, 2021, 01:54:31 AM
I would not have written this so politely 
The news are spread to manipulate the market and either sell BTC expensive or to be able to buy BTC cheaply. Especially newcomers to the market fall for it and sell their coins in panic - or get into coins like Doge at 70c, because they hope that this will be the next Bitcoin.
You could say that it was that way but if you think about it, almost every news around the world is used to manipulate the perspective and mind of the public. I mean that's the point of news, to make sure that something about someone is immediately known and have the peoplle judge them what they think about that someone. I think that China's deeds being reported isn't anything new plus they are a big country so expect that they will be influential to something. The news are spread to manipulate the market and either sell BTC expensive or to be able to buy BTC cheaply. Especially newcomers to the market fall for it and sell their coins in panic - or get into coins like Doge at 70c, because they hope that this will be the next Bitcoin.
July 07, 2021, 12:52:04 AM
Long story short, people get affected by news, and they affect the market.
I would not have written this so politely The news are spread to manipulate the market and either sell BTC expensive or to be able to buy BTC cheaply. Especially newcomers to the market fall for it and sell their coins in panic - or get into coins like Doge at 70c, because they hope that this will be the next Bitcoin.
July 07, 2021, 12:35:04 AM
Because it affected the people, and people are the ones who demand Bitcoin hence it affected the price of Bitcoin. In reality, it shouldn't have that much of a huge effect on the market tbh, it's just that most investors are quick to judge and decide, not really bothering if it would or even should affect the market. As long as two points of notice are in the news, Bitcoin plus any negative idea, then they'd immediately agree for some reason without really even understanding if it actually has an effect or not.
Long story short, people get affected by news, and they affect the market.
Long story short, people get affected by news, and they affect the market.
July 06, 2021, 10:23:38 PM
Probably there are whales player in China and I think one of big mining company works in China, I’m not sure though if they also ban mining since there are so many crypto regulations happened in China for over a years now, and this one is not new anymore. China has a big influence in cryptomarket, that’s why the price reacts on that also whales are riding the news to create more FUD, that’s whales will always do to make more money.
Whales control public opinion and release good or bad news to influence currency prices.In this case, if we react in the opposite direction, will the probability of profit be greater?
July 06, 2021, 06:37:38 PM
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 crypto currency market is big in China. Hence any negative news from China will have an effect on the price of bitcoin. This is because, as soon as China announces something that goes against bitcoin, isn't it normal that their people will start selling their coins they are holding? And with this the rest of the world also starts to panic. So they start selling too causing the price to dip further. The recent mining ban also had a very huge effect on the bitcoin network. These are just temporary though. The affects are seen only for short term.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?
that's very correct. most of the miners are also located in china. and if they are cracking down all these miners, what they will do, is sell some of their bitcoin if they haven't find a way yet how to get out of their country. but there are Chinese companies that already setting-up their mining facilities in US . the effect may be temporary as they go to other crypto-friendly countries and set-up their mining facilities. the crypto market in China is big, considering its population who are into crypto. so yeah, we can feel the impact whenever there is negative news coming from this country.
July 06, 2021, 06:31:26 PM
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 crypto currency market is big in China. Hence any negative news from China will have an effect on the price of bitcoin. This is because, as soon as China announces something that goes against bitcoin, isn't it normal that their people will start selling their coins they are holding? And with this the rest of the world also starts to panic. So they start selling too causing the price to dip further. The recent mining ban also had a very huge effect on the bitcoin network. These are just temporary though. The affects are seen only for short term. 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?
July 06, 2021, 05:55:56 PM
China held a very big chunk of btc in total as a country, so anything coming from there used to shake the markets very often. They were alone the market makers, but after institutions took entries in crypto, China's level of impact is not as same as it was. While China is selling, institutions from the whole world are buying btc for cheap because of them.
July 06, 2021, 04:54:38 PM
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?
You should always anticipate that every negative news that do connects or correlates with Bitcoin would really have the chance on making its market react nor being affected.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?
It might not be always or most of the time on having some effect but most likely there would be some reaction on the entire market which might dragged off bitcoin to the
floor or wont really make any significant effect. When it comes to sentiments or news then bitcoin is always been like this on where its neither it would react or not
but the thing matter most is that it do really recovers after some nasty dump or price decrease.
July 06, 2021, 04:48:15 PM
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?
China was playing a big role in businesses all over the world, so it's always possible that wealthy personalities would join bitcoin during glory days of btc pumps. However, when those several articles stating negatively about specific problems related on cryptocurrency in which China's involvement has been focused; I believed investors started to panic. 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?
July 06, 2021, 04:44:04 PM
The time will come for bitcoin that it won't be affected anymore with such news or if it will be affected, it won't be that much anymore when it becomes stable. Most of the markets are being moved by negative news even in the stock market and that's not new anymore.
You also see that whenever Elon tweets negative and positive about bitcoin, it also moves the market based on what he said but these days I think that's changing and it's not that affecting much anymore.
You also see that whenever Elon tweets negative and positive about bitcoin, it also moves the market based on what he said but these days I think that's changing and it's not that affecting much anymore.
July 06, 2021, 02:39:37 PM
It's not just negative news from Chinese government, negative news from anywhere including the US can affect the price and this doesn't happen only to Bitcoin only. I happens to other tradable assets too such as stocks, commodities etc. Markets always react to news as traders look to make some quick profits or look for opportunities of buying dips.
Have you noticed that such bad new about bans become rampant only when it's a bull run and never in a bear market?
Now you know why.
Have you noticed that such bad new about bans become rampant only when it's a bull run and never in a bear market?
Now you know why.
July 06, 2021, 12:21:23 PM
It could be because most of those big investors are in China if there are newbie investors there that are easily scared of the banning implementation they will probably sell their assets. Even though was announced the recent ban on Bitcoin but still Chinese citizens still able to hold or sell their coins through a decentralized exchange. So if most of them get panic, it will surely have an impact on the Bitcoin price.
Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?
That's the new investors that easily get panic selling, it could contribute to shaking the market price and the last one temporarily has a break time in most miners there or migrating into other countries. 
July 06, 2021, 08:42:46 AM
Besides the mining ban which actually had an effect to the network, it's mostly because a lot of bitcoin buyers are just retail "investors" who are expecting to get rich quick. They don't know what they're buying in the first place, hence why they're a lot more likely to impulsively react to negative press.
July 06, 2021, 08:35:30 AM
China's mining ban has dramatically reduced competition for block rewards and improved the profitability for miners based elsewhere.
The lower difficulty - the coins easier to be mined - allows miners sell cheaper and stay still on profit. Maybe this answers - at least party - to the question from topic's title
Of course, it's not only this. There are other reasons that keep the price low, reasons I'm missing, since there are also news about more institutional investors about to come in, hence an increase in demand, which should help the price get back on bullish trend.
July 06, 2021, 08:28:33 AM
For a while, China can seem to affect the btc price because the majority of bitcoin mining farmers come from china, that's all. Until when? Do not know. The hope is that this is China's ultimate threat against btc and a form of China's seriousness that wants to remove its involvement so that no other policies from that country will affect the price in the future.
It seems that the Chinese government's ban on virtual currency mining last month is good news.A large number of Chinese miners have left China.China's mining ban has dramatically reduced competition for block rewards and improved the profitability for miners based elsewhere.
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