[2018-01-16] Bitcoin Sets Lunar New Year Lows For 3rd Time

[moriskarlov]

News of a fresh crackdown on cryptocurrency trading in China has added to stress on Bitcoin and altcoin markets, seeing assets lose 30% in hours.

$200 BILLION DISAPPEARS IN NEW DOWNTURN

Bitcoin dipped around 13.7% to challenge $12,000 Tuesday as both South Korea and China present regulatory changes which could limit access even further for regular users.

Despite local Korean news outlets forecasting that a “shutdown” on the cryptocurrency exchange space was “not likely” Monday, the situation remains confused as lawmakers attempt to place restrictions on everyday traders.

In China, where exchanging to fiat was banned in September, authorities are now seeking to “end” the “centralized” trade of cryptocurrencies in any form where entities are acting as “market makers,” sources claim.

Government agencies met last week to discuss the additional measures, with People’s Bank of China Vice Governor Pan Gongsheng writing in a memo seen by Reuters that there was clear consensus for a further crackdown.

“The financial work conference clearly called for limiting ‘innovations’ that deviate from the need of the real economy and escape regulation,” he announced.

In comments to mainstream media, UK-based eToro senior market analyst Mati Greenspan said the knock-on effect for traders was potentially driving the downtrend in lessening volume.

“The pullback seems to be coming from a lack of buyers in Asia,” he suggested. “Japan and South Korea usually dominate this market but over the last few days, the volumes have been dropping steadily.”

The Koreans and Japanese are used to paying a premium of 20 percent or more per coin. It seems they’re getting wise and waiting for the market to even out before buying in again.

A FAMILIAR SIGHT FOR MOONGAZERS

According to averaged exchange data from Coinmarketcap’s listings, altcoins reacted considerably more sharply to Bitcoin’s dip, major assets declining between 20% and 30% over the same period.

In a curious contrast to previous upsets caused by China, local platform NEO’s token is currently performing the best in the top twenty, falling just 6.3%. A total of $200 billion was wiped off markets.

Reacting to the news, cryptocurrency commentators noted that it was only the reporting of the meeting by Western media this week that precipitated the price volatility, Chinese sources allegedly having known about its content via social media “rumors” since last week.

Meanwhile, a more light-hearted commentary on the price lows came from data analysis showing Bitcoin systematically set its lowest value for each of the past three years in the second week of January. The bottom came January 15, 16 and 12 for 2015, 2016 and 2017 respectively.

The unspoken power of the lunar calendar on Bitcoin ties in conveniently with another pattern, that of steep corrections precluding further upward price action in the coming period.

Source: http://bitcoinist.com/bitcoin-price-lunar-new-year-lows/

[Qartersa]

I hate to speculate on this but I guess people are becoming smarter on how to influence the increase and decrease of Bitcoin's price. As well all ought to know, Bitcoin's price is highly dependent on the current demand. When the demand for Bitcoin is high, its price is high as well. On the contrary, when the demand for Bitcoin is low, its price is low as well.

As we can see now, its price is going mainstream at an average of around $13,000. This is because most investors were shattered when its peak was long over and thus these investors opted to sell their Bitcoins. What I see that Bitcoin influencers do is to propagate news that will greatly impact on how Bitcoin investors and Bitcoin prospective investors will handle their monies. The former, are of course, scared they might lose whatever profits they made because surely their wealth greatly multiplied especially in the last quarter last year hence they do whatever it takes to protect their earnings. Simply put, they are more scared to lose now because the amount to lose is greater than it ever was in the past.

[uslfd]

China or not, the crypto market has a long overdue need for a good meaningful correction. i hope after the correction market could return to a more healthy style bullish market, not an exponential one.

[Irvinn]

I think that the strong influence on the depreciation of bitcoin was not so much the events in China and South Korea, as the shortcomings of the bitcoin itself, that is, the slowness and high cost of its transactions, which made bitcoin completely unattractive for investment. However, I am very surprised that analysts do not pay any attention to this.

[buwaytress]

China or not, the crypto market has a long overdue need for a good meaningful correction. i hope after the correction market could return to a more healthy style bullish market, not an exponential one.

Actually, I'm feeling rather relieved that good old January dip came, every delay to me would have resulted in medium-term repercussions. Just recalling a year ago the pessimism and downplaying of Bitcoin's resurgence to $1,000. The market's been very unhealthy for months and the withdrawal symptoms should last just as long. Seeing a lot of premature head shakes confirming the start of the end for Bitcoin, but then with the entire crypto market tumbling, this shouldn't be seen as Bitcoin's death warrant. Year-on-year, we're still over 1,000%.

In any case, I'm hoping a lot more holders are just observing. Tempting to try and sell on the crests for more padding up during the dips. Enjoy the coming lunar new year, people. Chinese zodiac by the way in general says the Dog's calming stability will take over from the volatility of the previous Rooster year. I bet you Chinese miners and govt at least pay heed to some of this.

[greeklogos]

I hate to speculate on this but I guess people are becoming smarter on how to influence the increase and decrease of Bitcoin's price. As well all ought to know, Bitcoin's price is highly dependent on the current demand. When the demand for Bitcoin is high, its price is high as well. On the contrary, when the demand for Bitcoin is low, its price is low as well.

As we can see now, its price is going mainstream at an average of around $13,000. This is because most investors were shattered when its peak was long over and thus these investors opted to sell their Bitcoins. What I see that Bitcoin influencers do is to propagate news that will greatly impact on how Bitcoin investors and Bitcoin prospective investors will handle their monies. The former, are of course, scared they might lose whatever profits they made because surely their wealth greatly multiplied especially in the last quarter last year hence they do whatever it takes to protect their earnings. Simply put, they are more scared to lose now because the amount to lose is greater than it ever was in the past.

Those people who take a deal with cryptos for several years must be exactly those ones who do not react at such market's shakes, but newbies go in panic everytime. There are tons of people who get in bitcoin without clearly understanding what is it, just with the only idea to earn money like everyone do it now.

[CryptoBry]

I am still positive that soon the market can be able to make a good rebound as what happened in the past. This is just one of the many roller-coaster type of rides in the world of cryptocurrency and usually the market is just looking for good reasons for this to happen. The future of cryptocurrency is definitely tied to the movements in Asia and even China right now can still have a big influence on the direction of this new industry. We just have to remain positive because this is not something new...it happened before, happening now and can even happen again in the future. Though we could be sad but definitely not anymore shocking.