[2016-11-04] Did Chinese Rumors Crash the Bitcoin Price? How Accurate Are They?

[Karartma1]

Bitcoin’s recent bull run ended with a thud on 3rd November, reaching above $740 before crashing to around $685 in just a few hours. Was a rumor of further Chinese restrictions on Bitcoin exchanges to blame? And if so, how accurate is the news?

Chinese Rumors Start to Spread… Again

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http://bitcoinist.net/chinese-rumors-crash-bitcoin/

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[1Referee]

The market right now has calmed down again it seems, but these rumors are only rumors at this point. I was reading a different article where it was stated what actions the Chinese government could take in order to enforce restrictions on their Bitcoin exchanges. Again, it says could, which implies that it hasn't been done yet.

This has been a point of attention for years, and now suddenly these news articles make their way to the public, with as result the market going down where a lot people were dumping like there was no tomorrow. I am quite sure it was a pricesely coordinated attempt to get the price to go down. And every time it seems to work. It's the panicky nature of people that allows these whales to repeat their strategy of spreading FUD.

[yayayo]

It wouldn't be the first time that news are fabricated to manipulate exchange rates. What makes me skeptical regarding the veracity of the rumors is that they surface after a significant upwards movement of BTC. The timing is suspicious (we've seen this before). It's not improbable that someone opened a speculative short position right before the "news" was released...

"China news" are a great tool for market manipulators, because most journalists and investors in the West don't speak Chinese and can't verify the truth. I'm pretty sure the price will recover quite soon - it's just a small hiccup on the way up. Because even if China truly imposes capital controls on Bitcoin exchanges it will not be the end of Bitcoin use in China, because an outright ban is not enforceable.

Besides if China takes a Bitcoin hostile stance, other emerging countries like India might improve their economic position by being more liberal towards financial innovation. Bitcoin is a worldwide currency, a ban by a single country will not change that.

ya.ya.yo!

[Karartma1]

I completely agree with both of you: the timing is very suspicious to say the least. I mean news manipulation and propaganda have always worked throughout History in every field.

[macedoniantable]

To have a super power nation like this is to manipulate the price so easily is disturbing to say the least.
That makes bitcoin not as decentralized as it's fundamentals were built upon in the first place.

[Kprawn]

To have a super power nation like this is to manipulate the price so easily is disturbing to say the least.
That makes bitcoin not as decentralized as it's fundamentals were built upon in the first place.

It depends on who are spreading these rumors and who is reacting on it. You have to monitor the Bitcoin exchanges during these dips to see

what triggers this and what the sales volumes are doing. As Bitcoin succeeds, the shilling will increase and these people will do anything in

their power to spread misinformation. This will only slow down the inevitable .... Bitcoin is going to the Moon ....soon. 

[Goms]

.... Bitcoin is a worldwide currency, a ban by a single country will not change that.

ya.ya.yo!

Except if the country accounts for about 1/3 of the world's population .

[InvoKing]

.... Bitcoin is a worldwide currency, a ban by a single country will not change that.

ya.ya.yo!

Except if the country accounts for about 1/3 of the world's population .

China will not do anything that will hurt bitcoin for many reasons including the economic effects and it offers jobs even if it isn't that much, bitcoin is like a kind of peaceful nuke for them in my opinion

[panju1]

.... Bitcoin is a worldwide currency, a ban by a single country will not change that.

ya.ya.yo!

Except if the country accounts for about 1/3 of the world's population .

And has a control over half the mining power in the world. 
What would the Chinese miners do in such a scenario?

[veleten]

artificial "rumors"
I think big players/holders are behind it,they are not interested in this rocket jump
it will not allow them to buy cheap,now we see bitcoin stabilise at 700 ish with huge volumes traded every day

[cryptonfly]

.... Bitcoin is a worldwide currency, a ban by a single country will not change that.

ya.ya.yo!

Except if the country accounts for about 1/3 of the world's population .

I thought that Bitcoin was created against any government regulations. I believe that governments will not be able to do anything bad to Bitcoins economics.

[cryptworld]

Hmmm i don't thinks this information was any accurate but hey, Chinese probably wanted to buy some cheap bitcoin so I'm cool with news like this since it helps us too (if you are able to spot them)

[rammy2k2]

china always manipulated bitcoin price
if u remember, a few years ago, they were launching rumours weekly, and not by anyone, but the bank of china.
EX :
they were saying BTC will be illegal in china, everybody dumped, they bought it, than said, they will think abt it, and so on

[Gahs]

So that means China is not only good at mining but also good at trading especially when it comes to creating panic among btc holders.