Did China Really cause Bitcoin Price to Slip Below $7000?

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic

Did China Really cause Bitcoin Price to Slip Below $7000?

  • Bitcoin the block-chain cryptocurrency is still the talk of the show. The crypto-currency shows volatile movement and no signs of stability in terms of price.
  • The Chinese Government made a declaration stating that it was banning financial institutions from handling bitcoin interactions.
  • Baidu is to china what google is to rest of the world. Alex Kruger found that bitcoin search patters on baidu mimicked the patterns on google.

Bitcoin the block-chain cryptocurrency is still the talk of the show. The crypto-currency shows volatile movement and no signs of stability in terms of price. Its currently trading around its six-month low after it dropped to around 7000 dollars in the previous week.

It has been facing extensive price fluctuations for over year and its acceptance and policy of countries across the globe varies vastly causing it to be indeterminable in terms of how one specific region reacts to it. While determining its price due to regulatory patterns causes difficulty the price functioning at a macro level can be analysed over the past couple of years.

There have been a lot of debate and controversy surrounding the indicators of the rise and fall of bitcoin prices. Bitcoin according to Long hash data suggests that china acts as a stimulus for the price surges. The change in Chinese markets and the response by fluctuations in bitcoin prices show the influence that Chinese markets hold on bitcoin.

This is also in all probability co related to the fact that a lot of bitcoin usage and tracking happens from Chinese consumers. An example of the hold china has on Bitcoin is when in December 2013. The Chinese Government made a declaration stating that it was banning financial institutions from handling bitcoin interactions.

The response was that the cryptocurrency fell over eight percent in a week. The was pushed further by the Central bank of china’s order to domestic banks for closing of bitcoin trading accounts.

Even in 2014 the country announced an immediate ban on IOC funding which led to a steep fall of over 20%. However, with the change in stance by President Xi Jinping last month endorsing blockchain technology led immediately to an increase in price which shows a co-relation.

One incident can be a co-incident but in economics demand supply work as constructs through the invisible hand and from the three instances listed it is visible that the chinses economy holds a firm grip on bitcoin value.

Baidu searches for bitcoin sky rocketed after the president’s endorsement of blockchain and the fluctuation in prices continued including a fall in price despite a continued increase in Baidu searches.

Baidu is to china what google is to rest of the world. Alex Kruger found that bitcoin search patters on baidu mimicked the patterns on google. The Chinese market has one of the largest holders of bitcoin which would also suggest the fluctuation impact.

China has heavily been involved in futuristic technology investment and since a lot of bitcoin miners they do hold significant influence on the cryptocurrency.

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