Why Bitcoin Prices Dropped Suddenly on 8 September 2017 ?
Just when the Chinese cryptocurrency market was trying to gain back its short term equilibrium after the 4th September news regarding ICO ban came another bolt from the blue which toppled the price of Bitcoin from $4679.97 to $4227.64 on 8th September. A Chinese magazine came out with a new article which hinted at a possible ban on bitcoin trading. This created major shockwaves all across the cryptocurrency market painting the BTC-USD figures in red hues.
The record low value as portrayed in the Bitstamp exchange was a direct effect of this news the authenticity of which has not yet been established. The article claimed sources close to Chinese regulators have revealed that a regulatory ban is in process to get imposed on the activities of the cryptocurrency platform. They have also mentioned about the ICO ban by stating Professor Deng Jianpeng of Central University for Nationalities who exclaimed that a lion’s share of ICO projects accumulating to 90% is under the government’s examination radar.
Regulators around the globe have been linking bitcoin trading with money laundering and illegal activities. The Chinese magazine also mentioned the same in their recent story which brought ahead widespread speculation in the market for digital currencies. These rumours caused much panic and hiked up the selling volumes of Bitcoins as holders were having second thoughts about it being a financial safe haven.
News articles published by the Chinese dailies have also spooked the crypto market before when they came out with cover stories indicating at a ban on Bitcoin by Chinese bodies. However BTCChina have put a lid on these rumours by making use of social media to share their normal operation status with the global crowd. They have also made it very clear that they have not received any correspondence from the authorised regulators in regard to the much hyped ban.
Cnledger, another Chinese news hub have come out stating that people should not pay heed to such news unless the same gets verified by authenticated sources. Recently various media houses reported the arrest of BTER operators and administrators by superimposing pictures of an unrelated 2016 scam with the BTER logo. Till date no news of arrests has been reported and no exchange trading platform has been forced shut.
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