Bitcoin Forum

I consider myself as newbie to crypto currency, i observed that if there is news regarding regulation of Bitcoin the price fallback will follow.

110% correct you are, whether the news is positive or negative the markets always react. Take a couple weeks back for example when South Asian countries were saying they weren't going to ban cryptocurrencies and thought the tech was interesting, the markets reacted by going further down. It wasn't until the SEC sent out a bullish sentiment did the markets recover so yeah suffice to say the markets react a lot to the mainstream media and regulation news.

I've never been paying that much attention to price before, during and after the possible crypto ban, but surely if some country was to ban crypto, people in that country would go panic selling and probably dump all of their coins from fear. That could probably have some effect on the price but it also depends what country it is, how many btc holders it has.

With that people don't really want this to be regulated and pursue the current day to day transactions of Bitcoin in the market without interventions of the authorities

It falls in response to regulation news in the short term, but in the long term we will need regulation if it's ever going to truly gain mass appeal and be the kind of thing that people can invest in their 401k's.

Regulations are a good thing people consider it bad for bitcoin but in today's world many government are against bitcoin and many have even banned it. With regulations being set it ensures safety of new investors , ensures that investors don't have to worry about a ban and panic sell
Check what japan did , it helped bitcoin a lot

Although little, but the impact on bitcoin prices. because all countries will refer to one country that provides regulation on bitcoin. and that usually affects the price.

frankly the regulation of a country is very important, because the government's goal is very good to protect its citizens from fraud. it's just that some media and scammers manipulate the news into a serious problem. we also misunderstand and panic to respond.

so true
regulations and restrictions may affect BTC prices to fall, as investors from related countries will not want to keep more coins

while the adoption of the government will actually make people compete to buy the coin and make BTC as part of their lives

According to specifications of Bitcoins, decentralization is the most admirable technology used to controls overall flow and circulation of generated coins. Bitcoin also have limited supply so I don't think Bitcoins will be regulated. Better, government will try to find out solutions for it. Increasing demand and limited supply will skyrocket price of Bitcoin globally. And Bitcoin will gain more popularity in coming future, which will directly affect and impact on price of Bitcoin against fiat.

Thanks for the responses, In short government should respond to it in a positive way and the investors should embrace it, for sustainability in the long-term approach.

Yes off course. As who makes governments and for whom made governments. And answer is people. If people are looking out for innovative change which is really revolutionary then why should government creates barriers. Rather I would like to say governments from all over world have to consider possibilities of adoption of blockchain technology for better and convenient future.

it was mainly timing that led to "regulation news" causing a drop in price. otherwise the same news is usually around and price is not affected by it at all. that is how news always works!

and to answer your main question, regulation attempts can go either way. it depends on what those attempts are. for example Japan also regulated bitcoin and ever since they did that price started rising from $1000 and reached $4000+. you see not all regulations are necessarily bad, they can actually help with bitcoin's adoption or they can slow it down.

definitely affect the price. whatever news from the government or regulator will have an impact on the price regardless of its bitcoin/crypto, stock market, property etc. a good news will push the price up where confident level increases resulting in higher take-up rate. a bad news will have a reverse effect.

If u are in trading, getting an early piece of good news can help having a head start.

Bitcoin is under a supply and demand basis fro determining its price. So any news/speculations has a direct proportionate relationship with the demand. Also the impact of the news depends on how many people were able to be affected to have a significant effect on the market.

That's true, most of the time some regulation of bad news will lead to the whole encryption money markets are in a big losses, and all sorts of FUD about regulation can also lead to the sharp drop in price, but most of the time, when the regulation after the bad news to come out of that is the best time to buy.

Yes, I think that it will give a great impact if there is any regulation that is going to happen, but of course many people will be taxed if it does happen.

Its depended from how crypto will be regulated, if this regulation accepts big restrictions yes price going back again for the time when peoples find the new ways to fool system

The process of imposing regulation on bitcoin always have somewhat negative impacts, at least a number of enthusiastic people face distress but the situation rather becomes firm later when they seek alternate ways of trading.
Like we know how deep the price dipped when china imposed banned on exchanges, but later it came on right path though

yepp Regulation Attempt affect the Bitcoin Price because the regulation will have an impact on supply and demand. while supply and demand will greatly impact on price and bitcoin fluctuations.
If someone suddenly sells all his Bitcoin, then the price will go down (supply increases). otherwise if someone suddenly wants to buy a lot of Bitcoin, then it has contributed to the amount of Bitcoin demand, so the price will move up.

The regulations only have a influence, when governments come with unrealistic and unfair regulations. A government can be Bitcoin friendly, but their regulations can be so restrictive that it suffocates Bitcoin's adoption and growth.

A typical example of this was the BitLicense that was introduced in New York. It was very complicated and expensive and it created a barrier to entry for many small busineses. A lot of those businesses left New York for more Bitcoin friendly states.

There news about strict regulations, will most definately have a negative affect on the price.

The regulations from a certain country could affect bitcoin's price when the volume of its bitcoins is high. So, the regulation occurs in the USA had a great effect on the price of bitcoin. I think some countries also regulate it until the bitcoin's price goes lower than $10k.

Yes, when South Korea controlled bitcoin for a while, prices fell back, and when India controlled the currency, prices fell.

After a period of market adjustment. Now bitcoin is growing steadily.

Everything looks good now.

Well you're right. Regulation news that seek to restrict btc too much is a kind of fud that may have big effect in general. Though i think it's inevitable that there will be restrictions because government's won't be too comfortable about an entirely independent market. We just wpuld have to ride these tides it seems

100% agreed. With all the hacking taking place, causing users to lose their money, I reckon the government would be given no choice but to overregulate the cryptospace to create a secure but a very restricted cryptospace environment.

Read this, I reckon the Japanese government will not take this sitting down any further.

https://media.coindesk.com/uploads/2018/02/code-860x430.jpg

A system error at a Japanese cryptocurrency exchange saw a user attempt to make off with a huge amount of bitcoin, according to reports.

The Zaif exchange, operated by Osaka-based Tech Bureau Corp., saw the brief glitch last week which enabled traders to make crypto purchases for free, according to Reuters.

As customers realized the situation, a number attempted to make the most of the 20-minute window for free coins. One, according to the Asahi Shimbun, even placed a order for bitcoin worth 2,200 trillion yen ($20 trillion) at the time; then moving to quickly sell it again.

Tech Bureau Corp. announced yesterday that the incident had occurred on Feb. 16, detailing that seven customers had obtained cryptocurrencies at zero cost.

Full article https://www.coindesk.com/customer-tries-to-withdraw-20-trillion-in-crypto-exchange-glitch/

Markets are quite sensitive to government news.

Reason is that there is a whole lot of people who don't actually know how bitcoin works. When they see that certain regulations are being placed on bitcoin, they panic and this essentially triggers even further dump offs, because others panic too.

In reality though, if you're a bitcoin holder, these government regulations are probably not going to affect you.

Bitcoin can exist with or without government support, and it can be traded anywhere, p2p. Its function does not decrease as government regulation increases.

Maybe those who dumped are small time traders who don't appreciate the beauty of decentralized and anonymity of the technology. As i found out now, even in our country if pursued a bank will try the blockchain technology. It would be history i guess. Likewise, the Central Bank would like to regulate the exchanges because it might be the source of money laundering, drug transactions and for terrorism funding (hearsay as of the moment).

I think that depends on the country the regulation is coming so how much influnece on bitcoin market this county has and what type of regulation we are speaking.
Generaly I think regulation can influence bitcoin price in positive way if it's done by experts and on fair basis.Maybe we all fear too much of the regulation thinking this will affect bitcoin in negative way but I think just the opposite.

Crypto ban now would even be the last thing used by any government as it would have no effect on the market. I see this as just a plain manipulated market and sometimes it sucks, but really, I do not expect anything less. Some have the power and resources which ends up placing them in a position to drop the prices when they deem it fit and then some panic as a result of that and end up giving them all their little money.

Every market always reacts to news so it is natural. The media one way or the other has always had impact on the market and most times I always have this huge feelings they are being paid by whales to do so, I may be wrong but if you look at all trends, they seem to happen a lot.

When market is having a FOMO rally, negative news comes in once you see a huge volume leave the market which obviously are from the whales, and then the market drops, until it could drop no more, and then a huge buy volume kicks in and we are at it again with good news from the media.

Yes it is going affect Bitcoin alot, regulation by the government can attract more people to invest and also can make investors go away, some of the reason investors put their money in crypto because they want to hide their money, and with the regulation they will be forced to fill in the identity documents, but with regulation we will have more positive impact, people will know about Bitcoin and people now can invest in Bitcoin without afraid Bitcoin going to be banned

It seems though like people's reaction is beginning to change towards regulation at least just for the community and cryptocurrency space to move forward. Really, let's face it, if it does not end up this way, government all over the world will keep dropping their negative feelings and serious clamp on the space until they make sure they get rid of the market, but with regulation since it balls down to exchange as well as crypto to fiat conversion anyway, things would make sense for the long term holders.

I agree with you. Most people always tend to misunderstand regulation as bitcoin or cryptocurrency space ending up being centralized. Unless bitcoin's protocol is changed, or that of any decentralized digital currency, this is something that cannot happen.

The government's regulating power will be on the exchanges and that is where the KYC, capital gain tax when converting to fiat all comes in. Regulation however, should create more awareness as the government is benefitting and the give room for growth.

All depend on where the regulation attempt is going to happen if it is in the big or rich county then it'll impact a lot.

Government regulation, FUD and positive news all three give its own color on bitcoin value. It reflects that most bitcoin users are lay people (easily instigated by negative news).

Regulation in the USA makes the price of Bitcoin increase because now a days most of the governments are not showing interest towards Bitcoin because of Banks. Once they start legalizing and regulating make many people start investing in Bitcoin.

The initial reaction of the cryptocurrency markets is negative and their prices go down whenever there is a news about imposing regulations on cryptocurrency exchangers. The faling prices was further aggravated by numerous FUD that scattered in the internet. The market have been sensitive to every news that comes from any online sources and readily affect its price movements. I think some degree of regulations are also needed as a protection from any illegal use of cryptocurrencies.

what do you think "Regulation" means?
I have not read a definition of "regulation" yet.
For me,Regulation are AML and KYC issues.
This seems fair and it will not affect the price of Bitcoin very much in a negative way.

If the country banning bitcoin in your scenario is not a big player in crypto then the effects will be limited but if it is one of the big players then we will see a crash but like always something that may seem negative can in fact be good since that will be a way for us to get cheap bitcoin for a limited amount of time, after all even if bitcoin was banned in most parts of the world it is not likely it will be banned everywhere and so we will always have ways to trade and cash out our bitcoin.

Absolutely agreed.

A lot of the regulation attempts from the government are just attempts to restrict entry for people that are aspiring to use bitcoin, to exchange their fiat currency into bitcoin, and so on. Doesn't have any logic in them other than restricting entry.

And that, obviously, even though bitcoin may be legalised in that country, is bad for bitcoin. And whenever that kind of news comes out to the public, traders panic especially if they are located in those countries and it leads to a panic dump.

So it definitely does have an effect on bitcoin price, no doubt about it.

Well regulations should be healthy for bitcoin in the long run. It doesn't mean that when it is regulated, it gets banned. There are some aspects of bitcoin that can be harmful to the security of people so there should be some restrictions in a way to negate that. Though it may seem to be a negative effect for those holding btc, but we have to look at it for the long term

It may or may not affect the price of bitcoin, in fact up to this moment no clear evidence to proof which circumstances affects the fluctuations of bitcoin price, some says the demand, other says the country's involvement to legality of bitcoin and a lot of speculation. But one thing is clear now, bitcoin price will continue to fluctuates from time to time.

I can imagine that for the moment regulations can drag the bitcoin price down.
People think through regulations it will become more difficult to buy or sell bitcoins. Maybe they even have to pay taxes.
But when you look at it closer, you see that those regulations make it more difficult for the scammers as well to play their game. And nobody likes to get scammed!
That is why I think regulations make the crypto currency market safer. And because of that, more people will stay invested.
And that leads in the end to a higher price than without regulations.

Any news can affect cryptocurrecnies market. And Regulation news are the same.
I think Regulations might cause the price to fall in short time. For example some people don't want to pay taxes and they might leave the market. But I think the effect in long term is positive. because it makes the market more healthy.

Bitcoin can be a security risk we all now that but the biggest issue for governments is how are they going to regulate something in which they do not have any control, they can control when a person sells his bitcoin for fiat and require all kind of KYC policies but what are they going to do when we can buy stuff directly with bitcoin? What are they going to do to stop people from using bitcoin instead of fiat?

News are affecting the price of bitcoin. I don't know the truth behind it and why whales are getting some move when there is.

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But the whole market is just a game of puff and bluff, when there are interesting news they take advantage of it so that the weak handlers will follow them as well and will help the storm that they are about to create. If there are good news too, it has a positive effect.