The Bitcoin price has plummeted in recent days and forced the entire crypto-market in the knee. But what are the reasons for the recent strong Bitcoin exchange rate slump? Many speak of a Bitcoin – and Cryptocurrency-spell in China was the reason. It was also reported that the office of Binance in Shanghai, the police searched and closed. However, the situation is not currently as clear as it seems at first glance. Therefore, we look at the latest information from China more precisely.
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China takes action against ICOs and trading platforms in Shanghai
Today, the People’s Bank of China (PBoC) has announced that the country’s Central Bank, officially, that they will take action against the ICO and cryptocurrency trading in the city of Shanghai. In the report it is mainly to ICO, STOs and other crypto with the help of Fundraising currencies are launched. Similarly, trading platforms are targeted by the investigations, the crypto-currency-transactions, Token-sales and the distribution of Token from the first ICOs Overseas to perform.In this case, the Statement is quite clear: people should not let the wave of Euphoria the recent News from China dazzle. Blockchain and crypto to not compare, and China has expressed never positive with respect to the introduction of crypto-currencies are currencies. It was simply a development in the direction of the Blockchain.This is probably one of the reasons why in the last days of the Bitcoin exchange rate so strong is broke. After the positive news from China a few weeks ago in terms of Blockchain, has exploded in the crypto-market boom has given the Bitcoin exchange rate a short-term increase of approximately 40%. But apparently the Pricing, as it currently is incurred, due to wrong facts. People have thought that China has now spoken out in favour of Bitcoin and crypto-currencies. This was not so. A classic example of “Buy the Rumors, Sell the News”. Only the News itself is here, but the negative down than let Rumors suggest.A secure Wallet with access to the private key. Bitwala offers the world’s first account, a Bank account, Bitcoin Wallet and the Bitcoin unites trade. Trade Bitcoin directly from your Bank account and store your Bitcoin securely in your Wallet. Your Keys, your Coins – Only you have access to the private key.
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Bitcoin crash due to Binance FUD?
As a further reason for the fall in Price of Bitcoin is probably the news that an office of Binance in Shanghai is like the new arrangement for the victims. According to reports, was closed by the office of the police searched and then. However, CZ, CEO of Binance, has announced on Twitter that it is a lie.
No police, no raid, no office. Hope you didn’t pay to read that FUD block. pic.twitter.com/W2msvY2hSA CZ Binance (@cz_binance) November 22, 2019
According to CZ, there was no police action, no search, and no office of Binance in Shanghai. It is, in his eyes, classic FUD. At the end we can’t currently say who is saying the truth. The information is quite opaque. In addition, there are some players on the market who want to make Binance the Position in dispute, and such actions to worsen the Reputation of Binance.Thus, we can currently assume that the negative News from China, even if they had no direct relation to Bitcoin, has now been priced in. In the official announcement it was only to ICOs and trading platforms in Shanghai, but not explicitly to Bitcoin. Therefore, currently, no one should panic. Bitcoin has already been Through a lot and will do it this time. It is only a matter of time. It will continue to be exciting.The action in China, the longer-term impact on the Bitcoin price? The Binance CEO is telling the truth or was there a search?Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)