Bitcoin Maintains $4,200 Value Despite Troubling “News” From China

Things are not looking all that great in the cryptocurrency markets right now. Yesterday’s “fake news” regarding Chinese regulators looking to ban all exchanges has created a lot of fear among cryptocurrency holders. This has had a negative effect on virtually all currencies in the top 20. The Bitcoin price, for example, dropped by nearly 8% on the purported news.

It is not entirely surprising to see the Bitcoin price responding negatively to yesterday’s China news. There is still some uncertainty regarding what the regulation entails exactly. Some news sources claim all exchanges will be banned from operating, whereas other sources indicate this was just a misunderstanding based on the earlier news regarding China’s ban on initial coin offerings. It is hard to make sense of it all, but for now, major Chinese exchanges are still operating normally.

Unfortunately, a lot of damage has been done in the wake of this “news”. The Bitcoin price took a very sharp tumble, resulting in an 8% loss over the past 24 hours. Although it is not the biggest dip we have seen in history, it also shows it only takes one (potentially fake) shred of news from Chinese regulators to send the price downward. This goes to show that many people still pay close attention to what the Chinese government aims to achieve.

With the Bitcoin price having declined by 8%, its market capitalization has also taken a  big hit. More specifically, the Bitcoin market cap hovers around the US$70 billion mark for the time being, whereas it was nearly US$76 billion not too long ago. Rest assured this lost value will be recovered sooner or later, as there is no way regulators can keep the Bitcoin price down for long periods of time. It’s also not the first time we have seen the Chinese trying to crash the market with news that can be interpreted in many different ways.

Full story at http://bit.ly/2xZpiVb

Source: The Merkle

 

 

 

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