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Posted on 03/27/2014 8:03:34 AM PDT by Errant
Less than a week after a fake Chinese news report sent bitcoin and litecoin prices plummeting on some exchanges, another similar rumour hit the Internet today.
News that the Chinese government would penalize any bank transacting with bitcoin exchanges after 15th April started to break around mid-morning China time on Thursday 27th March. This time, it was reported as fact by a number of news services.
The bitcoin price, already on a downward trend, dropped to a low of $561.61 on CoinDesk’s BPI and below the $550 mark on Chinese exchanges.
The latest report gave all the usual reasons a government might want to restrict digital currencies: money laundering, crime, price volatility and investor risk. Given that the People’s Bank of China had previously warned banks to stay away from bitcoin transactions, the fake news seemed plausible, but this was the first report of an outright prohibition.
Unfounded rumours
Cracks started to appear in the story when China’s exchanges claimed they hadn’t heard the news and tried to verify it with the PBOC itself, finding no information.
“We didn’t get any official announcement,” said Star Xu, CEO of major exchange OKCoin.
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If it breaks $500 on the downside and keeps sliding ... look for some buying opportunities.
Looks like blood in the streets with the IRS ruling and China rumors. ;)
Remarkable how $500 has held so firmly through all the recent tumult.
Yes it is. It’s remarkable how steady the price range is, given BTC’s small market cap.
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