Why can a piece of news from the Chinese government affect the price of Bitcoin?

[fullhdpixel]

it is always like generally. A big country will have bigger power and influence to something in concert. Like China, they are a big country with big power, moreover in mining Bitcoin. many miners are coming from that country. And when it is banned, it will really influence Bitcoin news. China is often offering FUD to crypto which makes the crypto market dropped suddenly and significantly. It is like almost every bullish trend, this country will create a certain ban in everything about crypto.

Not just many but massive amounts of coins are being mined from China and such a ban causes direct impact because all those miners would stop mining and will also look to sell their coins.

I don't think the impact is permanent though because we are already watching bitcoin recover and people did everything in their power to bring down bitcoin. Elon Musk announcing Tesla, China banning bitcoins and all the other big news combined were only enough to temporarily pull back the price a bit and now we are back to the path for the ATH.

[DoublerHunter]

Such news as Cracking down on miners is not palatable. Maybe because you don't have idea of the influence of Chinese to bitcoin mining. According to statista, 65% of the world mining hashrate is from China. There have been numerous news that Chinese government is cracking down on miner, if the hashrate drop, rate at which transaction get confirmed also drops. Such news is not pleasant to here

^ Definitely right, because in China, there are large companies of BTC mining. That is not all about the news that affects BTC price, it is the action on China that makes BTC price shaken and also reduce because of the result in banning BTC miners which is hash rate drop that could have an effect.
However, with or without China, BTC will always grow its price and we don't care if China were banned BTC, later soon BTC's price will go up and recover. Nevertheless, there are some people there in China who still have BTC holding even it is banned.

[CryptopreneurBrainboss]

When does Bitcoin become less sensitive to negative news?

This could be a reality in future provided we're willing to teach the new investors coming into the industry that all they'll hear about the bans in future are just a fud and they should never fall for them. The new investors are mostly does giving the worst reaction to this news and it's quite understandable as probably this is their very first experience and just like when it was our turned, we panic so they're likely to panic.

The whales knows this which is why they prey on the ignorance of the newbies, China news isn't the reason why the market is falling instead the reaction from the whales is what's making the market react to the news.

Only the whales have the willpower to influence the movement of the market while the retailer traders just follow. The market has alot of emotional traders which is why it's very volatile, the whales knows this and are taking advantage of it constantly.

[nelson4lov]

For a while, China can seem to affect the btc price because the majority of bitcoin mining farmers come from china, that's all. Until when? Do not know. The hope is that this is China's ultimate threat against btc and a form of China's seriousness that wants to remove its involvement so that no other policies from that country will affect the price in the future.

Yes. Regardless of how much the market has evolved since China matters sunk it, China still holds a major influence crypto. For one, they have majority of the mining power in the bitcoin mining space ~ around 65-75% of the total mining power is from there and if this is taken aware without any alternative in place, it would affect bitcoin to an extent. But its a good thing that Michael Saylor from Microstrategy stirred up the idea of the Bitcoin mining council which may, in the near future, make the bitcoin mining space more decentralized while taking off more power and influence from China.

[Cling18]

For now, most users and huge mining companies are from China so there's an adjustment in the market every time there's negative news. However, I believe that it isn't permanent. Time will come that any event of negative news from China wouldn't affect Bitcoin and other cryptocurrencies. They could ban it but Bitcoin will always have a strong foundation and it could stand alone.

[GeorgeJohn]

On July 6, the Central Bank of China closed down a Beijing-based company that provides software services for virtual currency transactions, and reiterated that no institution within its jurisdiction should engage in such transactions.
After the People's Bank of China reiterated its long-standing anti-crypto stance and warned institutions not to provide services to crypto-related companies, Bitcoin cut its earlier gains.
Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?

News in general has so much effect on the crypto market which is another ways of manipulating the market. This is the fundamental aspect of trading which can trigger a lot of reactions in the market and every trader needs to be alerted and prepared for any that may come up. Most new traders are not so much knowledgable about the importance of news in trading which is another type of analysis that is used in analysing the market movements.

News from Chinese government sometimes do have so much effects on the price of Bitcoin because China is known to be the hub of industries in the world and also the epicenter of cryptocurrency mining and other related crypto machineries and softwares. They have one of the cheapest electricity tariff which make it a good center for mining and other crypto related activities.

The cryptocurrency market gaining more resistance against media news making traders to become more aware of the effects of circulated news on Bitcoin and its offsprings.

[dunfida]

Such news as Cracking down on miners is not palatable. Maybe because you don't have idea of the influence of Chinese to bitcoin mining. According to statista, 65% of the world mining hashrate is from China. There have been numerous news that Chinese government is cracking down on miner, if the hashrate drop, rate at which transaction get confirmed also drops. Such news is not pleasant to here

^ Definitely right, because in China, there are large companies of BTC mining. That is not all about the news that affects BTC price, it is the action on China that makes BTC price shaken and also reduce because of the result in banning BTC miners which is hash rate drop that could have an effect.
However, with or without China, BTC will always grow its price and we don't care if China were banned BTC, later soon BTC's price will go up and recover. Nevertheless, there are some people there in China who still have BTC holding even it is banned.

Could be shaken off but doesnt mean that it would be over.These kind of events does really give out some impact but eventually it would be resolved or recover later on.
So no matter what are the events and fuds that China do made off then it isnt really a solid indication that this market will fall down into the floor.They are really good on making out
decisions that do mostly affect negatively the market but we arent blind when in talks about recovery.

[Kittygalore]

it is always like generally. A big country will have bigger power and influence to something in concert. Like China, they are a big country with big power, moreover in mining Bitcoin. many miners are coming from that country. And when it is banned, it will really influence Bitcoin news. China is often offering FUD to crypto which makes the crypto market dropped suddenly and significantly. It is like almost every bullish trend, this country will create a certain ban in everything about crypto.

It's not a matter of how big a country is, remember that Russia is much bigger but they don't seem to be that powerful in crypto, I would say that it's the influence of the country that is being considered how it can affect things because influence means that there's some sort of fear and respect in them that what they do can move other people.

[imstillthebest]

Why does the negative news from China always affect the price of Bitcoin?

because people in that country cannot use their btc and that makes the price go down . the publication of this news makes others to panic and this is another cause of price decline .

When does Bitcoin become less sensitive to negative news?

if btc became more establish because people can build more confidence and will now ignore negative news . this could take a long time because some countries wont cooperate of permanently legalizing the use of btc .

[tvplus006]

All negative decisions made by the Chinese government necessarily lead to a decrease in the price of bitcoin. But there will come a time when the Chinese government will have no such decisions due to the fact that there will be nothing to ban, because everything is already prohibited.

[molsewid]

For now, most users and huge mining companies are from China so there's an adjustment in the market every time there's negative news. However, I believe that it isn't permanent. Time will come that any event of negative news from China wouldn't affect Bitcoin and other cryptocurrencies. They could ban it but Bitcoin will always have a strong foundation and it could stand alone.

It is happened that China has a huge number of bitcoin users and with a large numbers of BTC miners and of course the prohibition of China to used or connect in BTC will going to prevent them to interact with the crypto and this is the reason why China announced to ban bitcoin i really affect that market price of bitcoin. As of now I do believe that bitcoin or the crypto market isn't resilient enough to a piece of negative news either it is not from China or even it came from a well-known FUD person of bitcoin but I do believe that bitcoin will soon not be going to be affected in any kind of negative feedbacks.

[CryptopreneurBrainboss]

Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?

Although it isn't just the news from China that affect the market but it's quite important to note, the Chinese government has been one of the most active government in the industry. They constantly have something to say about the industry, their news don't just cause a dump but also is the reason behind some significant gains in the market.

The industry has more of speculators than investors and majority of this speculators have little or no idea in the field of investing. They trade/invest with emotions and always waiting on someone to follow which is why the whales can easily manipulate them.

Bitcoin isn't just sensitive to negative news, it's also sensitive to positive ones it just depends on the mood the market is currently in for the news to have effect. In a bullsih market all positive news contributes positively to the market with negative news having very little to zero effect.

[TheGreatPython]

On July 6, the Central Bank of China closed down a Beijing-based company that provides software services for virtual currency transactions, and reiterated that no institution within its jurisdiction should engage in such transactions.
After the People's Bank of China reiterated its long-standing anti-crypto stance and warned institutions not to provide services to crypto-related companies, Bitcoin cut its earlier gains.
Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?

I think maybe when everything is well balanced out. Just look at the mining of Bitcoin for example, you will see that there are lots of miners located in China than every other part of the world. My research once shows that around 75% of miners are in China, that’s really huge, and when started their crackdown on Bitcoin it was sure going to affect the price of Bitcoin because they are big part of the community.

If it was just a small part of the community, and let’s say that their miners were contributing somewhere around 5% to 10 percent, it is not going to affect the market badly like that. We have seen other countries that their governments took similar actions against Bitcoin, but nothing happened, if there is, we didn’t even feel it.

[sana54210]

Could be shaken off but doesnt mean that it would be over.These kind of events does really give out some impact but eventually it would be resolved or recover later on.
So no matter what are the events and fuds that China do made off then it isnt really a solid indication that this market will fall down into the floor.They are really good on making out
decisions that do mostly affect negatively the market but we arent blind when in talks about recovery.

Those events will always happen that is the thing about bitcoin, we are not seeing "china bans bitcoin" type of things for the first time, this is their millionth banning of crypto and somehow it is still valid there, even after this ban go check out the Chinese exchanges and there are still moves and the volume is down a lot but there is still some there.

Long story short we will have to face these news all the time and that doesn't change anything we just have to move on with our lives and ignore what they are saying with this because that is all we can do about it at this point, dwelling on why they did or how we can or whatever etc etc all those things are useless because it is not going to help us, which is why just pick up where we left from and move on is the only option we have and that is what we should be focusing on as well, that is the way bitcoin price can go up.

[bonghip]

It's not just negative news from Chinese government, negative news from anywhere including the US can affect the price and this doesn't happen only to Bitcoin only. I happens to other tradable assets too such as stocks, commodities etc. Markets always react to news as traders look to make some quick profits or look for opportunities of buying dips.

Have you noticed that such bad new about bans become rampant only when it's a bull run and never in a bear market?
Now you know why.

Right. Not just China, any negative news can affect the volatility of Bitcoin. However, China is where the most negative news comes out, and it also has a lot of impact on bitcoin. And of course, China is the most populous place in the world, with the most investors, crypto projects and Bitcoin miners. So China can always have a big influence on Bitcoin and the crypto market!

[ven7net]

On July 6, the Central Bank of China closed down a Beijing-based company that provides software services for virtual currency transactions, and reiterated that no institution within its jurisdiction should engage in such transactions.
After the People's Bank of China reiterated its long-standing anti-crypto stance and warned institutions not to provide services to crypto-related companies, Bitcoin cut its earlier gains.
Why does the negative news from China always affect the price of Bitcoin? When does Bitcoin become less sensitive to negative news?

I think the answer is obvious here. China has its own digital yuan and in order to have a monopoly in finance, all competitors must be eliminated. As for the fall in the price of BTC, there is information that it was in China that the large mining capacities of BTC were themselves, and if now China prohibits everything related to BTC, then it is obvious that all miners and other companies are closing or transferring their activities, and this is a temporary decrease activity, which probably led to a decrease in the price of BTC. You must understand that for the stable operation of the BTC price and its price, it is necessary that the mining farms are not concentrated in one place, since if they are closed, a problem immediately arises, in this case the price drop.

[michellee]

It's not just negative news from Chinese government, negative news from anywhere including the US can affect the price and this doesn't happen only to Bitcoin only. I happens to other tradable assets too such as stocks, commodities etc. Markets always react to news as traders look to make some quick profits or look for opportunities of buying dips.

Have you noticed that such bad new about bans become rampant only when it's a bull run and never in a bear market?
Now you know why.

Right. Not just China, any negative news can affect the volatility of Bitcoin. However, China is where the most negative news comes out, and it also has a lot of impact on bitcoin. And of course, China is the most populous place in the world, with the most investors, crypto projects and Bitcoin miners. So China can always have a big influence on Bitcoin and the crypto market!

Hopefully, it will not happen too long because we know that bitcoin is strong and will rise soon. I believe we will see much good news about bitcoin, which can lift the price to increase and reach a high price because that has always happened since a long time ago. China really impacted the bitcoin price and made the price down, but the market will settle and start to invite more people to invest in bitcoin. If the price is down, we have got a chance to buy bitcoin because once the price increase, and we can make a profit.

[DarkDays]

For a while, China can seem to affect the btc price because the majority of bitcoin mining farmers come from china, that's all. Until when? Do not know. The hope is that this is China's ultimate threat against btc and a form of China's seriousness that wants to remove its involvement so that no other policies from that country will affect the price in the future.

Yes. Regardless of how much the market has evolved since China matters sunk it, China still holds a major influence crypto. For one, they have majority of the mining power in the bitcoin mining space ~ around 65-75% of the total mining power is from there and if this is taken aware without any alternative in place, it would affect bitcoin to an extent. But its a good thing that Michael Saylor from Microstrategy stirred up the idea of the Bitcoin mining council which may, in the near future, make the bitcoin mining space more decentralized while taking off more power and influence from China.

The points made about taking away the influence and mining power from China following the ban in the end might not be such a bad thing after all.

We know BTC mining has a direct effect on the circulating BTC and ultimately price, so coming up with a more decentralized alternative to mining should in the long run preserve the freedom that BTC provides to people, and in effect make it more attractive to the masses.

[nelson4lov]

~Snipped

~Snipped

The points made about taking away the influence and mining power from China following the ban in the end might not be such a bad thing after all.

We know BTC mining has a direct effect on the circulating BTC and ultimately price, so coming up with a more decentralized alternative to mining should in the long run preserve the freedom that BTC provides to people, and in effect make it more attractive to the masses.

That's right. If we can manage to keep China's dominance to the bare minimum, there it would completely take off the fud that comes with it anytime China is in the news for the wrong reasons. When that's done, we can have a market that is free from all the China nonsense. Majority of bitcoin holders are macro-bullish at all times. This and along with the fact that the Bitcoin Mining council aims to keep mining operations as decentralized as possible in addition to best prices, taproot implementation soon. All this makes it bullish in the long term.

[Silberman]

All negative decisions made by the Chinese government necessarily lead to a decrease in the price of bitcoin. But there will come a time when the Chinese government will have no such decisions due to the fact that there will be nothing to ban, because everything is already prohibited.

While you are right at the same time we know that FUD exists in this market so even if China banned every single aspect in which you can deal with cryptocurrencies, like mining, trading and holding that does not stop the Chinese government to announce they are banning it again or that they are considering even harsher measures against those that deal with bitcoin so they can send the market in a negative spiral if enough newbies listen to them.