Chinas Correction - Exchange Rates and Bitcoin

[EternalWingsofGod]

With China tanking and the economy slowing down what opportunites are there for Bitcoin to develop or will China force the price movement downward in the long term.
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The price of bitcoin fell more than 7% today

Commodities and stocks across the world have been dropping sharply over the last day, as investors questioned the health of the global economy—especially China.

The pain has spread to less-trafficked corners of finance, too.

The price of bitcoin fell by as much as 8% today, hitting an intraday low under $209. (At last glance, the crypto currency was down by roughly 7%.)

The decline comes amid a broad-based market rout that many trace back to worries over China. The Shanghai composite index was down by more than 8% Monday. Some analysts have noted increasingly close linkages between bitcoin and China. Goldman Sachs analysts mentioned back in March that 80% of bitcoin volume is exchanged into and out of the Chinese yuan, which implies that many bitcoin traders are based in the People’s Republic (or at least use the yuan as their preferred currency).

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Will the Chinese move from the Stock Market to Bitcoin en masse or will prices keep going down.

http://qz.com/486837/the-price-of-bitcoin-fell-more-than-7-today/



Some side topics that were to complicated to make as an OP topic but interesting.

(Inter Crypto conversions and price declines)
https://elidourado.com/blog/bitcoin-kareken-wallace/
(Bullet 2 is pretty much Core vs QT)

http://www.jstor.org/stable/1882388
http://marginalrevolution.com/?s=kareken

[cryptasm]

wow thats a crazy change if its true=0

[Swordsoffreedom]

wow thats a crazy change if its true=0

Na its true the Chinese Stock market had a nice leverage crash today
Led to giant swings in other markets as well blood everywhere even in Bitcoin part of the reason why China's so interesting is that recently it did a litecoin pump as well that made Bitcoin go up and now that its in pain with all that trading volume the price crashed here as well.

That said BREAKING news
http://www.theguardian.com/business/live/2015/aug/25/asian-stock-markets-braced-for-steep-falls-after-wall-street-slump-live
http://www.bbc.co.uk/news/uk-34052618

China just did an interest rate change if predictions hold true Bitcoin should go up now.

Micro speculation at time of posting
http://www.coindesk.com/price/
212.26

Within 12 hours
$220

[bitcoinmasterlord]

China has cut its main interest rate by 0.25 percentage points to boost growth in its economy. With this good news over all asian markets has performed better today and now US and europe also doing good. Yesterday all markets collapsed because of fears that China's slowing growth means less business for everyone else. However these rate cuts or global currency market variations will not impact much on bitcoin prices because bitcoin price purely depends on demand and supply of bitcoins. Currently the price of bitcoins decline due to uprise of XT. It is nothing to do with china corrections

[ashour]

It's difficult to say if the china starts buying bitcoin. The recent stock market drop will be interesting for the upcoming weeks, it might be a small crash or a long one. Time will tell how the stock markets will handle all this down trend.

[MinerHQ]

It's difficult to say if the china starts buying bitcoin. The recent stock market drop will be interesting for the upcoming weeks, it might be a small crash or a long one. Time will tell how the stock markets will handle all this down trend.

It looks like long correction because china is struggling to strengthen their economy since quite some time by reducing rate cuts and buying their own shares and devaluation currency but it looks nothing is working as per their estimation.

[BTChaintrader]

China has a lot of currency reserves plus they can start a QE program, just like USA. So don't worry about China.

The real reason for the drop was actually FED. People are expecting interest rate hike, so they sell of, because it's bad for the developing countries.

And the reason behind the global sell of was spread of fear plus that maybe the USA's economy is not strong enough to be able to absorb higher interest rates.

[Swordsoffreedom]

Went back and looked at the price history with Coindesk
As soon as China said the interest rates were going down the price went back up.
http://www.coindesk.com/price/

That said the US stock market followed a similar pattern but not to a full return to value compared to Bitcoin over the week so we shouldn't underestimate the China or US effect on Bitcoin but it tends to Bias towards China still.

http://www.marketwatch.com/story/us-stocks-set-to-fall-as-volatile-week-leaves-investors-wary-2015-08-28
http://www.reuters.com/article/2015/08/28/us-markets-global-idUSKCN0QX01U20150828