{Earlier|Previously} {this week|today}, {the People|individuals}'s Bank of China (PBoC) {invited|welcomed} Chinese Bitcoin exchanges to {discuss|talk about|go over|review} Anti-Money Laundering (AML) {policies|plans} {and|as well as|and also} the margin trading. {Upon|After} the {release|launch} of the {central bank|reserve bank}'s {official|main} {statement|declaration}, the Bitcoin {price|cost|rate} {has|has actually} {dropped by|visited|stopped by|come by} {three|3} percent.

1. Bitcoin Price Roller Coaster: US Panics, China Shows Resilience
teamsteverhyner.com/bitcoin-price-roller-coaster-us-panics-china-shows-resilience/
Earlier this week, the People’s Bank of China (PBoC) invited Chinese Bitcoin exchanges to discuss Anti-Money
Laundering (AML) policies and the margin trading. Upon the release of the central bank’s official statement, the
Bitcoin price has dropped by three percent., 9
Bitcoin price immediately recovered within a few hours after the initial drop in value, bouncing back from $1,020 to
$1,040. The Bitcoin price is close to reaching its previous weekly high of $1,080 and has already surpassed the
$1,070 trading value.
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2. US panic
While it is quite evident that the announcement of the central bank
caused the short-term decline of the Bitcoin price, it is important to
note that investors and traders on US-based Bitcoin exchanges
have panicked.
On Wednesday afternoon, the Bitcoin price on Chinese Bitcoin
exchanges continued to surge, as shown below. Trading volumes
maintained its increasing trend since Feb. 1 and the value of
Bitcoin has been continuously increasing since Feb. 2.
China resilience
As shown on the chart above, trading volumes and Bitcoin price
were increasing during and after the announcement of the Central Bank of China, which means that Chinese
investors and traders aren’t necessarily that concerned with regards to the approach of the central bank. The
People’s Bank of China and Chinese Bitcoin exchanges have a tight and strong relationship and it has shown
nothing but productivity and efficiency so far.
In contrast, the trading volume and Bitcoin price charts on major US Bitcoin exchanges like Bitfinex showed a rapid
decrease in price and trading volumes. In the Bitfinex trading chart shown below, the price of Bitcoin reached a low
of $1,000 immediately after the announcement of the People’s Bank of China.
US investors and traders panic sold Bitcoin under the assumption that the announcement of the People’s Bank of
China could lead to a decline in the Bitcoin price. Many believed that Chinese traders would panic sell Bitcoin as
well. However, it was exactly the opposite, as major Chinese Bitcoin exchanges including BTCC, OKCoin and Huobi
showed strong performances.
The resilience of the Chinese Bitcoin market and trading platforms towards speculative news and misinformed
coverage of the local Chinese market has allowed Bitcoin to bounce back and recover relatively quickly.
Re-posted from www.cointelegraph.com by Joseph Young February 9, 2017
This is just part of the game. Getting all worked up about short term price swings is counter-productive.
Stay the course and mine Bitcoin. Click here for more information.
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3. Steven L. Rhyner
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