It seems as though much of the news driving the price of Bitcoin, as well as other digital currencies, is emanating from China.
While news of some government or other around the world deciding to either regulate Bitcoin or ICOs, or “look at” how Bitcoin is traded, doesn’t really move the needle on Bitcoin prices, when China does it has a big impact.
This past week, Chinese regulators stated that they were going to ban initial coin offerings (or ICOs), which early in the week sent Bitcoin prices down about 5%, before recovering that amount and more as the week wore on.
However on Friday, Chinese media outlet Caixin reported that Chinese authorities were preparing to take an even greater step of shutting down cryptocurrency exchanges, where many Chinese investors have been acquiring and trading their Bitcoins.
While Bitcoin specifically and digital currencies in general are certainly a global phenomenon, Chinese trading is still the largest component of Bitcoin trading with many Chinese looking to get their money out of the country (and their home currency) in the easiest and least detectable way possible – digital currencies.
The Caixin report sent Bitcoin prices down by more than 10% late in the day Friday. Late Saturday Bitcoin is changing hands at about $4,240 – down from just under $5,000 at this time last week, and Friday’s high of about $4,700.
Will this be just another bump on the upward trending road of Bitcoin prices?
Bitcoin price chart, past 10 days. Source: Bitcoincharts.com.