Bitcoin prices crash after Baidu waves goodbye to BTC payments

Bubble theory confirmed for now as apparently it takes only two days to halve the value of digital investments

Is this the end of it? Or will it rise again? Oh well, only the future will tell. For now the nail in the coffin was the unsurprising backtrack of Baidu from previously accepting the digital currency as a means of payment.

It was only a matter of time after the PBOC announcement on Thursday. The endorsement of BTC by the Chinese company in the middle of October was the rocket fuel that powered it in the first place. So its only logical that prices come down after that has been retracted.

Chinese companies do not like to contradict the country’s authorities and all of the previous hype that caused prices to skyrocket surrounding these events seems to to be evaporating and tackling the currency back to the ground. It took it a month to rise and only two days to halve in value — now let’s hear that its not a bubble!

Whether or not the sharp fall in prices is “only” due to Chinese investors pulling out or it is simply confirming the bubble theory, the crypto-currency is now trading at half its value from before the PBOC announcement. It seems that the encapsulation surrounding most Bitcoin supporters has finally popped and the market is coming back to its senses following the record breaking month of November.

The recent Chinese authorities’ announcement was the initial trigger for this massive sell-off from above $1200 to just about $605 USD as of writing. For now the answer to the question whether Bitcoin is an alternative to Gold or an alternative to Tulips seems to be tilting towards the latter version. Let’s see for how long it goes on!

Meanwhile leading Bitcoin exchange by volume Mt Gox has announced on its website that it is partnering up with UK payment processor AstroPay to facilitate transactions from Latin American countries. The company is operating throughout Latin America and asserts itself as a provider of secure payment solutions for the region.

Direct bank deposits will be available from Argentina, Brazil, Chile, Colombia, Mexico, Peru and Uruguay. The direct link of AstroPay to several leading banks in the region is supposed to guarantee fast and secure processing. All of this is happening as Bitcoin could use the help of a few extra buyers.

Stay tuned to LeapRate for our detailed analysis of the latest price movements in the digital currency next week.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report. 

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