Bitcoin price goes from 1000 to 5000 in 6 months, but now it's tumbling just because it went back to 4200?
Tumbling upwards
Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
31–40 of 122 posts
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#32Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…
This article from Business Insider has a better explanation.
http://www.businessinsider.com/initial-coin-offering-china-b...
Namely:
"However, the wording of the PBoC edict also suggested that trading and usage of all cryptocurrencies, including bitcoin, could now be illegal in China.
The PBoC said that virtual currencies that are "not issued by the monetary authorities... do not have legal status equivalent to money, and can not and should not be circulated as a currency in the market use."
The PBoC added that "any so-called tokens financing trading platform shall not engage in the exchange of legal currency and tokens." It even goes so far as to ban platforms from "provid[ing] pricing, information, [and] intermediary services.""
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#33Earlier quoted context omitted.
I think China likes Bitcoin because money flowing into it does not strengthen the dollar thus putting pressure on their foreign reserves. If people are sneaking their money out of the country, they'd rather be trading it for Bitcoin than dollars.
If your using btc to launder money you're likely converting it to other stable currencies
Except if they leave the money in bitcoin they don't have to explain where they got it. If they turn it into a foreign currency they have to tell a bank where it came from. Come to think of it, that's probably where all the ICO demand is coming from. These guys have money stuck in crypto and are desperately looking for a way to invest it.
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#34Earlier quoted context omitted.
I think China likes Bitcoin because money flowing into it does not strengthen the dollar thus putting pressure on their foreign reserves. If people are sneaking their money out of the country, they'd rather be trading it for Bitcoin than dollars.
Unless there is also lots of demand from bitcoin to RMB, if not then foreign reserves have to be tapped at some point.
The government doesn't care what the bitcoin/rmb exchange rate is because they don't buy oil or imports in bitcoin nor do they hold any bitcoin reserves.
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#35Earlier quoted context omitted.
It doesn't. The title is clickbait. Nobody knows why Bitcoin goes up and down, but people listen to whoever talks authoritatively on the subject. China's announcement was probably a trigger that caused people to sell, rather than being directly responsible for people selling.
It does seem that consistently this year, every time Bitcoin hits an ATH or psychological price, that the PBOC issues some edict or warning that causes the price to drop. There's even a meme for this phenomena: https://www.youtube.com/watch?v=Ry6PpRXk0dQ This is from 2014! (I know the link goes to content not typically found on HN, I'm doing it for the purposes of illustrating that this is such a seemingly common occ…
It's helpful to remember that BTC has had strong upwards pressure for several months now: http://imgur.com/IWwOgm9
A graph like that was going to correct, one way or the other. PBOC's decree seems incidental rather than the root cause.
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#36Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…
The price of bitcoin was correcting many hours before any news of the China ICO restriction. So yeah probably completely BS correlation.
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#37Earlier quoted context omitted.
Unless there is also lots of demand from bitcoin to RMB, if not then foreign reserves have to be tapped at some point.
The government doesn't care what the bitcoin/rmb exchange rate is because they don't buy oil or imports in bitcoin nor do they hold any bitcoin reserves.
I'm not disagreeing with that: Bitcoin isn't a sneaky way of doing forex unless the RMB used to buy bitcoin is being converted into dollars (or another convertible currency), which most definitely is cared about.
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#38If China cracks on exchanges, everyone's out of luck. And they said already they will now audit them. A b an is coming, and other nations are and have been following to tighter control over cryptos and ICO's. Dark days ahead.
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#39Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…
What is an ICO?
Re: Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal
#40Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…
>>Aren't ICOs more of an altcoin phenomenon?
ICOs are an Ethereum phenomenon. Ethereum isn't a fork of Bitcoin's codebase and thus isn't an altcoin.