Crypto-Carnage: Bitcoin Crashes Below $3000 After China Demands Local Exchanges Halt Trading

Tyler Durden's picture

The latest bitcoin news out of China has confirmed recent rumors and traders' fears about a widespread crypto-crackdown, sending the price of bitcoin world-wide spiraling lower to levels it hasn't touched since the beginning of the "summer of bitcoin." Information appearing from China appears to confirm that trading will no longer be legal for Bitcoin-to-fiat platforms. According to market regulators, all exchanges must close by the end of the month.

The price is down 20% this morning, adding to a similarly large drop yesterday, slipping below $3,000 for the first time since mid-July.


Ethereum is testing $200...

Across all the major Cryptocurrencies, it's a bloodbath

Cryptocurrency CEOs reacted to the latest developments outof China: several industry players told Cointelegraph that while markets were reacting harshly to Chinese regulatory moves, the long-term benefits for Bitcoin’s ethos and therefore stability were clear.

“The price is always a solid metric of the markets’ greed and fear, and reflects regulatory uncertainty at the moment,” Leverj CEO Bharath Rao commented. “This also signals that development of non-custodial and decentralized models will accelerate.”

“Regulation is neither necessary nor possible for decentralized models, and the future may have gotten just a bit brighter by nudging the crypto community to develop high speed, non-custodial exchanges.”

Of course, Chinese investors are notorious for their bubble-chasing (and forming) and short-term trading activities, which repeatedly influenced Bitcoin volatility in the past. The latest regulatory warnings produced a second mass exodus to p2p trading platforms such as Localbitcoins this year.

With sanctioned Bitcoin-to-fiat trading looking to stop in China altogether, a major market influence will disappear, but some doubt this will last:

“China is practically building a cottage industry for mining and exchanging bitcoin and other cryptocurrencies, so it is hard to believe that they intend to exit a market with so much potential upside,” Jason English of Blockchain alliance Sweetbridge continued.

“Even the apparent ban on ICOs seemed to be more of a stopgap in order to get some policies in place. If anything, this example shows the volatility of the space and that some market-makers can likely take advantage of an unclear news cycle to create a sell-off and buy back opportunity.”

* * *

Meanwhile, in a suggestion that Beijing may be getting a modest case of buyer's remorse, overnight that Li Lihui, a senior official at the National Internet Finance Association of China urged Chinese regulators to create a regulatory framework to support the development of digital currencies, Reuters says, citing Li who spoke at an event in Shanghai. Li, a former president at Bank of China, said global regulators should work together on virtual currencies, suggesting that while China may well be interested in cryptocurrencies, it wants to assure it has complete control over the capital-control evading protocol.

For now, however, as the recent price suggests, traders are stuck in "sell first, ask questions later" mode.

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sheikurbootie's picture

"well, that escalated quickly, really that got out of hand fast!*

SoilMyselfRotten's picture

Uh boy, this may have turned a correction into a falling knife

fx's picture

It's all done only to protect China's citizen from doing foolish things with their Yuans.



Someone seems very worried in China. I smell some major crackdown in the financial sphere over there - they are keen to close all escape routes before that.

ET's picture

 ET Aug 29, 2017 12:24 PM

Physical Gold and Silver in private non-bank storage is how one should save.

Negative real interest rates and bogus inflation numbers erode savings if held in banks.

Always save what you can see and touch. Cryptos are non-physical and can suddenly lose their value because of the non-physical nature.


ET Aug 29, 2017 1:34 PM

Gold and Silver are safe haven assets that have lasted for centuries because of their physical qualities.

Physical and real assets, not electronic or paper claims, are what you should own. Cryptos will go down in history as a bust larger than the dotcom bust.

VinceFostersGhost's picture



Tulips baby.......tulips!

ET's picture
ET Aug 29, 2017 1:58 PM

Physical Gold and Silver will hedge against inflation and shield one's savings from bank failures and crypto theft and sudden devaluation or obsolesence.

If you own crypto, you essentially own nothing. Get something for nothing before it's too late. Physical ownership is the endgame.

Vote up!

4 Vote down!

-5 tmosley   ET Aug 29, 2017 2:00 PM

Empty words.

Vote up!

Vote down!

-3 ET   tmosley Aug 29, 2017 2:05 PM

Bitcoin just fell 21%.

Did you know that?

Vote up!

Vote down!

0 wisebastard   ET Aug 29, 2017 2:07 PM

no it didnt....

Vote up!

Vote down!

-1 ET   wisebastard Aug 29, 2017 2:10 PM

If crypto maintains its value, there is absolutely no need to check a site to know how much it is worth.

Think about it. How accurate are those price quotes?

Are you being played?

Prices can be overstated to get more suckers to drop their cash into the scheme.

Vote up!

2 Vote down!

-2 FreeShitter   ET Aug 29, 2017 2:07 PM

Bitcoin is on your mind 24/7.....relax some dude. For real.

CarpetShag's picture

Mosly was going to back up the truck at $3000.

If you like buttcon at $3000 you' ll love it at $5

To paraphrase Rodney Dangerfield: "These days, if you don't own buttcon, you own a popcorn fart".

BaBaBouy's picture

AND Poof, The 1000 Pound Gorrilla (Buyer) is GONE . . .

tmosley's picture

Bought and already in the black, peanutz.

kochevnik's picture

"Blood in the streets" ==> Buying opportunity

ET's picture
ET Aug 28, 2017 10:47 PM

Physical Gold and Silver in your hand is like Ambien.

You will sleep well knowing that your savings in these Precious Metals will be there for you for many decades unlike cash or cryptos which can suddenly lose their value.

A bird in the hand is worth two in the bush.

CarpetShag's picture

Two hands in the bush are worth 5 larks on the roof.

ET's picture

Vote up!

Vote down!

0 ET Aug 28, 2017 7:32 PM

Commodities can be touched, stored and consumed.

Cryptos are fake commodities. To say that they are commodities is fraud.

NoDebt's picture

ET, could you please stop posting like that?  That screen-scraping thing you're doing that clogs up the top of the whole fucking thread.  I don't read it when I see it like that.  I doubt anyone else does, either.

If you have a point to make, use your own words.  Maybe insert a link or two if you feel it serves to illuminate the subject, but please stop with these massive piles of screen-scraped jibberish.  It ain't helping you convince anybody.



tmosley's picture

This is what it looks like when a peanut jizzes on his keyboard and hits "save".

Pretty funny, since I have been far more accurate in predicting this move than he, or anyone else has been. At least, anyone not long crypto. Most of us saw the obvious fucking gap that was certain to get filled.

jcaz's picture

Priceless... For real.

Where's that "$3500 is support" douchebag?  You understand what it means when something breaks support?

ET's picture
ET Aug 27, 2017 3:56 PM

Litecoin is exploding. This is the last major cryptocurrency to skyrocket.

Physical Gold and Silver parabolic move coming up. Wealth isn't real unless you can hold it in your hand.

Vote up!

Vote down!

0 b-sugar   ET Aug 27, 2017 3:58 PM

>Wealth isn't real unless you can hold it in your hand.

Says the fucker who just boasted about electricity coins.

Vote up!

Vote down!

0 ET   b-sugar Aug 27, 2017 4:04 PM

Cashing out of the paper or digital space and purchasing real assets is how the game is played.

Those who are all in paper or digital have to pray that they can get their hands on real assets.

A bird in the hand is worth two in the bush as the proverb goes.

Apparently, a lot of the college students are pouring money into Litecoin with their student loans. The lower per coin price seems attractive. Physical Gold and Silver exploding up is the endgame.

Vote up!

Vote down!

0 new Keyser   ET Aug 27, 2017 8:54 PM

There will be no bear market as long as central banks around the world keep printing currency and buying equities in each other's markets... We are watching the globalization of equity markets worldwide by the central planners... 

ET's picture
ET  Honey-Badger Aug 31, 2017 4:10 PM

The race for Physical Gold and Silver is on.

The loser will be the one holding paper and digital claims for assets, especially crypto.

Exchanges will take a bank holiday before cryptos are banned under Trading with the Enemy Act. Crypto without any cryptograpic qualities has no reason to exist. All we see is momentum and its momentum is slipping.

wulf's picture

Some idiots were double-mortgaging their house to buy shitcoins a month ago...

I really laugh at these neckbeards, seriously.

ET's picture

Those people are in some serious trouble.

tmosley's picture

You mean "one idiot". I remember a kid doing the same with silver back in 2011. Told him not to. Don't know what he did. 

tmosley's picture

Literally nobody claimed there would be support at $3500. What a stupid fucking thing to say. It was a fucking gap up straight from 3000 to $4000. Of course it wasn't going to stop in the middle of that range.

Fizzy Head's picture

you still looking at the techincals? LoL


try looking into the manupulation... only a fool truly believes this is the only thing on this planet not being manipulated... but what does a retard know anyways.

tmosley's picture

Hahaha, you sound like a beaten dog.

If you would stop trading shit that only trades on one or two exchanges, and is thus SIMPLE to manipulate, and move into an actual free market, where manipulation becomes impossible and all you can do is extremely heavy handed shit like this, you would do a lot better.

kochevnik's picture

Jew money is physical. You can use it in the toilet

IronSights on'um's picture

They just let the air out of bubble coin

The central planners's picture

Still remember when the pro cryptos were saying that in order to stop cryptos you needed to stop the internet or an emp attack and i said that the only thing the government needed was to close the exchanges. A viola guess who was right.

NoDebt's picture

Way back I had the same idea- the exchanges are the weak link and exposed to the whims of governments who don't want competition to their fiat.

But, man, here's how you put a brave face on that little show-stopper:

"the future may have gotten just a bit brighter by nudging the crypto community to develop high speed, non-custodial exchanges"

THAT is some serious spin, right there.  BAM!  Non-custodial exchanges, just like that.  Of course, how you put dollars (or whatever) into these "non-custodial exhanges" or, more importantly, how you get it back out, God only knows.


Gobble D. Goop's picture

Why, Amazon of course.  Bezos will sell ANYTHING.

tmosley's picture

What, EXACTLY, makes you think that cryptos are over? Are you retarded?

Peanut communists are being forced out is all. Same shit would happen to PMs if one of your TWO exchanges were to shut down and forced everyone to either take delivery or liquidate. Most people would liquidate, because most people are stupid.

Gobble D. Goop's picture

And the American communists won't do the same?

Mr_Potatohead's picture

You are very entertaining to observe, tmosley.  Your responses to bitcoin skeptics are nearly as entertaining as the ones that were commonplace on various pennystock message boards around 2000.  Keep up the hard work.  You're paying (temporarily) good money for bitcoin.  View it as tuition for what you're about to learn.

The central planners's picture

Lol talking about being retarded. Are you saying that if government shotdown the exchages in other words the same that are resposible of manipulating down the prices then the prices are going down? ROLF!!

tmosley's picture

If the government shut down all the exchanges, all the speculators looking for paper profits would get fucked. EXCELLENT! Decentrilized exchanges are already in the works. Moves like this will just push all the demand into those new services. 

I've told you idiot peanutz this before. Crypto is like a many headed hydra. Cut one head off, many more grow back in its place AND they all become immune to the type of attack that you used. Then the one you cut off reattaches itself and comes back to life, also immune. You are watching evolution in real time. But more powerful even than that.

This is why your shiny rocks have sat like dead lumps for years. They can't change to avoid the repeated attacks they experience.

But don't worry. I'm sure someone will come up with a decentrilized PM exchange priced in crypto where true price discovery will be possible. Maybe a decade from now. After all the more important problems have been solved. Hahaha.

The central planners's picture

So.. now your backtracking your past comment. Youre just awesome.

tmosley's picture

Hahaha, nice hallucination there, peanut boy.

SubjectivObject's picture

feels like ... like 

old and illver

Cash2Riches's picture

As predicted, nothing, nothing ever goes up in a straight line. This is why I called a top in silver around $48.00, which was pretty darn close. BTC was going parabolic and that is not healthy. Now it needs to correct, and it will be stronger in the long run.

Greenspazm's picture

How can a sequence of backed-by-nothing digital nadas that is accepted practically nowhere for payment exhibit "strength"?

Mr 9x19's picture

quite logical that it cannot be tolerated as currency, it is based on void and volatility so fucking high you can't peg to it...

currency is something that must be stable enough for a whole economy to be based on it.

bumping 40% overnight it all but a currency. it is at best a speculative tool to make insane leverages, at worst it is a scam ( to me it is the same, depend the way you look at ). BTC produce nothing, it is not reel economy. it does not produce any wealth.


the common idea was  BTC would act to replace gold. but once the big boys come into play, it is as manipulated as any other value of any market, it is all fake.

you don't touch it you don't own it.  and gold never was a way to make money, it is a way to preserve existing money. it is a value holder. BTC is scam to steal money from others.

Gobble D. Goop's picture

Au and Ag preserves your wealth, it puts inflation to work for you instead of against you.  It let's you tell the banksters that Two can play that game.


kochevnik's picture

How can anyone care about your comment as it is digital?

yogibear's picture

Central Banksters can't have a competing currency so they slap it down.

Jamie Dimon came out to make the announcement.

Dimon added to the entertainment carnage for them.

sankol's picture

So much for being that haven of last refuge. A gold coin in pocket, better anyday than fictional digits somewhere in the etherspace.