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

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.”

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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.

Comments

ET (not verified) fx Fri, 09/15/2017 - 07:45 Permalink

 ET Aug 29, 2017 12:24 PMPhysical 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 PMGold 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.

In reply to by fx

ET (not verified) VinceFostersGhost Fri, 09/15/2017 - 07:48 Permalink

ET Aug 29, 2017 1:58 PMPhysical 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!4Vote down!-5tmosley   ET Aug 29, 2017 2:00 PMEmpty words.

Vote up!4Vote down!-3ET   tmosley Aug 29, 2017 2:05 PMBitcoin just fell 21%.Did you know that?

Vote up!0Vote down!0wisebastard   ET Aug 29, 2017 2:07 PMno it didnt....http://finviz.com/forex_charts.ashx?t=BTCUSD&tf=d1

Vote up!1Vote down!-1ET   wisebastard Aug 29, 2017 2:10 PMIf 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!2Vote down!-2FreeShitter   ET Aug 29, 2017 2:07 PMBitcoin is on your mind 24/7.....relax some dude. For real.

In reply to by VinceFostersGhost

NoDebt ET (not verified) Fri, 09/15/2017 - 08:23 Permalink

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.  

In reply to by ET (not verified)

tmosley NoDebt Fri, 09/15/2017 - 09:09 Permalink

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.

In reply to by NoDebt

ET (not verified) jcaz Fri, 09/15/2017 - 08:05 Permalink

ET Aug 27, 2017 3:56 PMLitecoin 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!6Vote down!0b-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!4Vote down!0ET   b-sugar Aug 27, 2017 4:04 PMCashing 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!0Vote down!0new Keyser   ET Aug 27, 2017 8:54 PMThere 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... 

In reply to by jcaz

ET (not verified) ET (not verified) Fri, 09/15/2017 - 08:08 Permalink

ET  Honey-Badger Aug 31, 2017 4:10 PMThe 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.

In reply to by ET (not verified)

tmosley Fizzy Head Fri, 09/15/2017 - 09:11 Permalink

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.

In reply to by Fizzy Head

NoDebt The central planners Fri, 09/15/2017 - 08:20 Permalink

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. 

In reply to by The central planners

Mr_Potatohead tmosley Fri, 09/15/2017 - 08:58 Permalink

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.

In reply to by tmosley

tmosley The central planners Fri, 09/15/2017 - 09:17 Permalink

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.

In reply to by The central planners

Mr 9x19 Greenspazm Fri, 09/15/2017 - 08:48 Permalink

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.

In reply to by Greenspazm

sankol Fri, 09/15/2017 - 07:37 Permalink

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