Reason for Today's Crash: China Bans Bitcoin Payment Processors

[lindatess]

One thing people are discussing on here is the validity of the China news today. It seems likely that it is a false report. Everyone is panicking from the news of one reporter, who is interpreting one source.

Anyway too late to sell I guess, so hold might be better

Yes, but all this bad news is all coming one at a time... It seems like a conspiracy to me.

Who knows what bad news is still to come?

I was going to sell at $900 when the PBOC announcement was made, but then I only managed to sell at $814 earlier today.

[btcperth]

Chinese banks might get burned, if the only way to purchase bitcoin is cash purchase, then people have to withdraw money from banks to purchase bitcoin, and a mass scale of withdraw will create a bank run 

A run could only be caused if a large percent of depositors withdraw their money - but bitcoin users are probably something like 0.1% of people in China?

[zendantom]

One thing people are discussing on here is the validity of the China news today. It seems likely that it is a false report. Everyone is panicking from the news of one reporter, who is interpreting one source.

According to this article: http://forexmagnates.com/china-bans-payment-firms-from-working-with-bitcoin-exchanges/

"Upon encountering these rumors on Chinese internet forums the financial newspaper “National Business Daily” contacted the PBOC and the leading third-party payment providers in China, Alipay and Tenpay, and they all confirmed the reports."

And third-party payment providers had big share of money going in and out of China exchanges ? Bank wire transfers seems most used I guess...

[Equilux]

All bullshit;

http://www.reddit.com/r/Bitcoin/comments/1s61x1/what_the_actual_chinese_notice_not_summary_says/

[Ibian]

FUD all along then? Okay, but say that's the case, most people are not reading this thread. So, now what?

[Oldminer]

No surprises here.

I suspect the mis-quote was spread by a whale or 2 that has also since sold some of his BTC to push the price down in preparation for their next big buy.

[TheJacob]

If it is as simple as a mistranslation/misquote why is btcchina down more than any other exchange. Presumably the people on their can read the original statement as it was written.

[EverettMarm]

According to this article: http://forexmagnates.com/china-bans-payment-firms-from-working-with-bitcoin-exchanges/

"Upon encountering these rumors on Chinese internet forums the financial newspaper “National Business Daily” contacted the PBOC and the leading third-party payment providers in China, Alipay and Tenpay, and they all confirmed the reports."

And third-party payment providers had big share of money going in and out of China exchanges ? Bank wire transfers seems most used I guess...

I don't know. The article (the English one) seems to indicate that people won't be able to make deposits from banks either, and people have until the Spring Festival (sometime in January?) to withdraw their fiat funds. I can't read Chinese, so I can't confirm this myself.

All bullshit;

http://www.reddit.com/r/Bitcoin/comments/1s61x1/what_the_actual_chinese_notice_not_summary_says/

That's an 11 day old post talking about a completely different topic than the news released yesterday.

[cAPSLOCK]

All bullshit;

http://www.reddit.com/r/Bitcoin/comments/1s61x1/what_the_actual_chinese_notice_not_summary_says/

Umm.  That link is11 days old and concerns the FIRST announcement.

Wow.

[cAPSLOCK]

At least people are right about the bs part.  Lots of that handy.

[pand70]

The crash in btcchina speaks of itself. I don't think that the chinese are mislead about an article in reddit or coindesk or in anywhere else.
I think they know better what's going on and they respond by selling...

[Zangelbert Bingledack]

Someone's noticed the informational uncertainty between China and the West and is exploiting it to manipulate the market. The gullible people will have their lunch eaten by the more astute observers.

[ringsting]

I'm in China and speak Chinese:

• The BTC website is still accepting payments from my bank
• I called them and they told me that withdrawals are still happening and I can withdraw FIAT.  My guess is that they are cash rich as people putting money in there and withdrawing it overseas.
• Great arbitrage ops at the moment

[pand70]

I'm in China and speak Chinese:

• The BTC website is still accepting payments from my bank
• I called them and they told me that withdrawals are still happening and I can withdraw FIAT.  My guess is that they are cash rich as people putting money in there and withdrawing it overseas.
• Great arbitrage ops at the moment

Call them again and ask them to make an announcement in the front page and clarify the situtation.

[GigaCoin]

I'm in China and speak Chinese:

• The BTC website is still accepting payments from my bank
• I called them and they told me that withdrawals are still happening and I can withdraw FIAT.  My guess is that they are cash rich as people putting money in there and withdrawing it overseas.
• Great arbitrage ops at the moment

it probably takes a couple of weeks for the law to be implemented.

coin desk did another article today confirming this news further:

http://www.coindesk.com/sources-confirm-chinas-payment-processor-ban-bitcoin-price-falls/

[quone17]

It's my understanding that the China entities have until sometime in January to cut off ties with BTC processors.  So it could either crash now or there could just be downward pressure for a while due to the Chinese selling.  However I bet many Chinese have other ways to buy BTC, unless the gov. blocks all BTC sites, which I have not heard about them trying to do.

[pbody]

Maybe they will find a way through the black market? Chinese probably expected this ban. I'm not seeing a massive price dip yet, given the news and am becoming more skeptical of a crash to the 3 or 500s.

[ajax3592]

All news that originates from china must be observed carefully. The most recent news about the regulatory update is sketchy at best. Either way bitcoin does as it has in the past massive drop that builds into a massive rise.

[C. Bergmann]

The worst scenario seems that chinese exchanges can't be fueled with money any more.

Suspect, this will happen - what will chinese  people do with their bitcoins? If they sell them all on chinese exchanges, prices will drop to a very low bottom. Western exchanges wouldn't follow it, no chance for arbitrage. So chinese bitcoiners could sell Bitcoins way under the global value on their exchanges, hold them to wait for better times, or look for opportunities to spend them - either in a chinese blackmarket or outside china.

Interesting times are coming.