Bitcoin Price Comes Back Down to $700 Level After Reports China May Ban It

It seems the recent Bitcoin rally is not unstoppable after all. After the BTC/USD exchange rate reached as high as $744 per Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term yesterday many expected it to very soon break the $750 benchmark. Instead, the price rapidly crashed to as low as $677 before settling back around the $700 level.

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The reason for this unexpected drop is new rumors that Chinese regulators are set to limit Bitcoin trading. If this sounds familiar it is because we have seen this play out before a number of times already, when Chinese central bankers and financial authorities made some disparaging statements about the cryptocurrency.

What seems to have sparked the rumor mill this time are unconfirmed reports assigned to anonymous Bloomberg sources that China is looking to limit Bitcoin as a way to prevent people from moving their funds offshore. After a Bloomberg Terminal screenshot posted on social media first appeared with the story, many people doubted the validity of the report. However, soon after the popular financial doom and conspiracy blog ZeroHedge picked up the story and ran it to its considerable avid following giving it a higher level of credibility with many day traders.

Charles Hayter, the CEO of CryptoCompare.com, comments: “At this moment the rumours are unverifiable leading to a number of possible scenarios - With uncertainty comes Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.

A premium has been in existence on the Chinese markets for the past few weeks as the Yuan has depreciated - on peaks this has been as high as $30 between various markets. The average difference has now come off with the three largest Chinese exchanges trading on a par with the two largest USD exchanges, BitFinex and Bitstamp.

This would suggest more weakness on the CNY markets and a haltering of the optimism, for the time being, in China.

Either the story is true and Bitcoin will face trouble in China - or rumours are being created and circulated to move markets - which is not a stretch of the imagination.”