The curiosity of the man is a natural trait. And whenever there are big bitcoin price movements, the question arises as to why. – Why has the BTC rate dropped by 10% now? Is there a reason for this? However, in the majority of cases, there is not a single trigger for large price movements. However, we can sometimes identify triggers (often, that's the sum of individual factors).
When the Bitcoin course wrote the story a little over a month ago, October 26, and that it had increased 42% in 24 hours, one of those moments has again been reached, everyone in the cryptospace wondering why. The main reason given was Xi Jinping's recent statements. Thus, China has already been described as "number 1 reason for the Bitcoin pump". In the last 30 days, many news from the world's most populous country have been published. Thus, the Cryptospace looks again and again impatiently the Middle Kingdom. That is why, today, we would like to sum up once more how much the People's Republic really influences the BTC rate.
China and the impact on the Bitcoin course – a long tradition
We begin in 2013. On December 5, the first Bitcoin story saw new beards coming in from China. Thus, the news has spread that China has banned all financial institutions from making BTC purchase transactions such as forest fires. As a result, the price of bitcoin fell from $ 1,100 to $ 900 in a few hours – a drop of 20%.
A slight decline took place in March 2014. According to Chinese magazines, the Chinese central bank had ordered the PBoC to block Bitcoin trading accounts. As a result, BTC lost 8% next week. However, we can not say with 100% certainty whether the fall in prices is directly related to this report.
In September 2017 (just before the start of the legendary Bullrun), Bitcoin once again suffered double-digit losses due to China's negative news. Earlier this month, the first announcement made by China regarding the publication of the new ILO guidelines, which eventually led to the ban on the ICO, was announced. Moreover, the fear that China will ban all crypto-exchanges has made its way. A few days later, a Chinese market confirmed it via Twitter (she said it would stop any trading activity by the end of the month), which resulted in a 20% decline over the course of the month. the day.
In addition, the news early this year that China would totally ban Bitcoin Mining caused some shocks in the Bitcoin chart. As I already mentioned in the introduction, the consequences of the last 30 days on BTC
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There is a correlation between China and BTC
The following chart, which we have from LongHash colleagues, again clearly shows the link between the Bitcoin price and Bitcoin surveys of the Chinese Searchengine Baidu. There has been a huge increase in the number of search queries in parallel with the rise in Bitcoin prices last month.
As we note, there are a few examples that show that news of the Middle Empire has caused significant price swings in the BTC. However, none of these examples is irrefutable proof that China actually influences the price of bitcoin. However, the correlation is obvious and evidence suggests that new keys from China could reinforce the current trend and dynamism of bitcoin. In short, China is certainly relevant to the price of Bitcoin – but that can hardly be quantified.
How do you see the role of China and its influence on Bitcoin? Can the Middle Kingdom determine the price of Bitcoin?
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(Source: Shutterstock, Longhash.com)