Bitcoin Crashes after Chinese Exchange Says It Will Halt Trading

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Bitcoin has seen its longest losing streak in more than a year after one of China’s largest online exchanges said it would stop handling trades by the end of the month amid a government crackdown on cryptocurrencies: China accounts for about 23 percent of bitcoin trades and is home to many of the world’s biggest bitcoin miners, but BTC has crashed as much as 35% in Chinese trading.

The communist nation plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, Bloomberg News reported Monday. The ban will only apply to trading of cryptocurrencies on exchanges, according to people familiar with the matter, who asked not to be named because the information is private. Authorities don’t have plans to stop over-the-counter transactions, the people said. Shanghai Financial Service Office has also ordered to close down bitcoin trading platforms in the city, China Business News reported, citing an unidentified person.
 
Cracking down on Real Estate transactions in Democratic countries too. Money wants to flee China. Why?
 
So what other countries will follow suite? Impact?

Cheap video cards on their way :)
 
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noko said:
So what other countries will follow suite? Impact?

Cheap video cards on their way :)
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Amazon jacked the Sapphire RX 580 prices on nowinstock by 40 bucks and they don't sell out in 10 minutes. Expect the price to drop again to 250. I won't buy one until 230
 
Good, hopefully prices for video cards will start coming down to um... more sane levels.
 
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There is not a ban. There never was a ban. There is 'rule tightening' on the exchanges.
It used to be every 2 weeks there as a supposed china ban. Apparently people still eat it up.
 
Weak hands sold, and china bought cheap. Next week or so the story will change and price will skyrocket with china holding a larger portion of the pie. All us regular people have to do is trade properly and have no loses.

And don't kid you're, GPU prices aren't coming down.
 
That was a bit delayed. The changes were announced last week and stopped the rise (BTC was tickling $5000). Guess the cold feet people decided to get out of the pond momentarily.
 
Honestly, despite events like this, cryptocurrency is looking more and more interesting to me. Unfortunately I lack even base-level experience in "traditional" investing so I should probably get that sorted out before even looking at anything crypto-related.
 
King of Heroes said:
Honestly, despite events like this, cryptocurrency is looking more and more interesting to me. Unfortunately I lack even base-level experience in "traditional" investing so I should probably get that sorted out before even looking at anything crypto-related.
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Just buy and sell. If you try using leverage in crypto you're going to be in a world of pain.

A. world. of. pain.
 
Retronym said:
There is not a ban. There never was a ban. There is 'rule tightening' on the exchanges.
It used to be every 2 weeks there as a supposed china ban. Apparently people still eat it up.
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This is the correct answer. China and their verbal "bans" never follow with any enforcement. They've pulled this bullshit about 7 times over the years, then followed it up with.. nothing. Then there's a whole 'nuther layer to this which is chinese fakenews bloggers spewing things the government supposedly said about "bans" or "plans to ban" - but never actually did - in an attempt to shake the herd off of their positions and panic sell.

Chinese insiders and whales continue to increase their stack with every one of these dips, and it always bounces back with an even greater market cap.

The fact the latest FUD circlejerk coincides with the heads of some of the world's biggest banks squirting tears over Bitcoin being a "fraud" also provides a valuable insight: it means they know its here to stay, and that it threatens the status quo, or else they wouldn't even acknowledge its existence. It is too big for any government or financial institution to be able to ignore.
 
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DPI said:
This is the correct answer. China and their verbal "bans" never follow with any enforcement. They've pulled this bullshit about 7 times over the years, then followed it up with.. nothing. Then there's a whole 'nuther layer to this which is chinese fakenews bloggers spewing things the government supposedly said about "bans" or "plans to ban" - but never actually did - in an attempt to shake the herd off of their positions and panic sell.

Chinese insiders and whales continue to increase their stack with every one of these dips, and it always bounces back with an even greater market cap.

The fact the latest FUD circlejerk coincides with the heads of some of the world's biggest banks squirting tears over Bitcoin being a "fraud" also provides a valuable insight: it means they know its here to stay, and that it threatens the status quo, or else they wouldn't even acknowledge its existence. It is too big for any government or financial institution to be able to ignore.
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China is like a bully that steals your lunch money everyday. Unfortunately most of the world can't even remember what happened yesterday I guess.
 
gigaxtreme1 said:
Cracking down on Real Estate transactions in Democratic countries too. Money wants to flee China. Why?
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They keep devaluing their currency.

King of Heroes said:
Honestly, despite events like this, cryptocurrency is looking more and more interesting to me. Unfortunately I lack even base-level experience in "traditional" investing so I should probably get that sorted out before even looking at anything crypto-related.
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It's very simple really, buy low and sell high. Your emotions will make you do the complete opposite mind you, take now for instance.
 
It's nice having been in the space for a while. These swings don't even phase me anymore. At least going down.
 
Sweet, sell some other coins for BTC and then watch it climb again in a week or so and win!
 
I love down swings. But now and sell when it recovers, This is the onyl way to make money on cryptos unless your in it for the long. never jump on the upstroke unless your ready to sell very quickly.
 
gigaxtreme1 said:
Cracking down on Real Estate transactions in Democratic countries too. Money wants to flee China. Why?
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Insane levels of corruption between business/govt. (like no shit actual hundreds of billions to trillions in dollars of theft and graft) there but the leadership changed a while back and they've been cracking down on them so thieves have been bailing big time for the last couple of years.

Its why so many Chinese have been buying the crap out of Canadian homes which has helped inflate their bubble further. Its happening to some extent in CA and other coastal US states too.
 
There is a more important possible thing to watch here: If you own bitcoin you should watch for correlation between risk and price. So if you notice right now the dollar is a risk asset, it sells off when you hear about North Korea or whatever the incident of they day is when there is one. If bitcoin is establishing this trend: it confirms it as a risk asset as well. Which means it wont be a safe haven for the short term anyway.
Watch for bull trap or head and shoulders top, if that happens bitcoin goes to 1,000
 
hCW-Q4Qw2lxY_lTHzvB99HLNuv0qxEnRUMNEjNbDSC4.png
 
PeaKr said:
I disagree. The overall trend since the collapse has been to devalue. When they devalued twice in just a couple days in 2015 it sent shock waves through the global markets. Below is a blurb describing the correlation between bitcoin and yuan devalue, there are more.

https://cointelegraph.com/news/how-chinese-yuan-capital-flight-influence-bitcoin-price
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If the CNY is being devalued, I should be able to buy more CNY with 1 USD than before. Instead, it's the opposite: I'm able to buy less CNY with 1 USD than before.
 
alexyang said:
If the CNY is being devalued, I should be able to buy more CNY with 1 USD than before. Instead, it's the opposite: I'm able to buy less CNY with 1 USD than before.
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the yuan is usually pegged to the dollar until china devalues it on certain occasions, usually when usd/cnh gets close to 7 they start to threaten. the yuan is also becoming a bigger player in the worlds reserve currency, its now in the basket. the dollar has been in intermediate decline since 12/2016 so yeah you do get less yuan for dollar but that is relative. If you put ur yuan in a shoebox over the last 10-15 years thinking it was a store of value you were wrong by 30-40%. When chna starts talking of devaluing the people start thinking about capitol flight. also the $ has lost a lot of value over the last decade as well but its hidden, only the stuff you need is expensive and comes in smaller boxes.
 
PeaKr said:
the yuan is usually pegged to the dollar until china devalues it on certain occasions, usually when usd/cnh gets close to 7 they start to threaten. the yuan is also becoming a bigger player in the worlds reserve currency, its now in the basket. the dollar has been in intermediate decline since 12/2016 so yeah you do get less yuan for dollar but that is relative. If you put ur yuan in a shoebox over the last 10-15 years thinking it was a store of value you were wrong by 30-40%. When chna starts talking of devaluing the people start thinking about capitol flight. also the $ has lost a lot of value over the last decade as well but its hidden, only the stuff you need is expensive and comes in smaller boxes.
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Sorry, the yuan has not been pegged to the dollar since 2005.

http://money.cnn.com/2005/07/21/news/international/china_yuan/
http://www.nytimes.com/2005/07/22/b...no-longer-to-peg-currency-only-to-dollar.html

Again, all you have to do is look at the chart:

https://finance.google.com/finance?q=USDCNY&ei=sgK8WeGGHYKz2AbbxaSYBQ

Choose "all" in zoom. Notice how the line was almost perfectly horizontal before mid-2005? That was when the yuan was pegged. Since then, it's been a managed float.

It's really simple. If the yuan were being devalued, I ought to be able to buy more with 1 dollar than I could before. Relative to when Trump was elected, I can't buy more. I can only buy less. If that's devaluation, then the Chinese government is doing a terrible job of it.
 
alexyang said:
Sorry, the yuan has not been pegged to the dollar since 2005.

http://money.cnn.com/2005/07/21/news/international/china_yuan/
http://www.nytimes.com/2005/07/22/b...no-longer-to-peg-currency-only-to-dollar.html

Again, all you have to do is look at the chart:

https://finance.google.com/finance?q=USDCNY&ei=sgK8WeGGHYKz2AbbxaSYBQ

Choose "all" in zoom. Notice how the line was almost perfectly horizontal before mid-2005? That was when the yuan was pegged. Since then, it's been a managed float.

It's really simple. If the yuan were being devalued, I ought to be able to buy more with 1 dollar than I could before. Relative to when Trump was elected, I can't buy more. I can only buy less. If that's devaluation, then the Chinese government is doing a terrible job of it.
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There is talk about them doing another de valuation round. I don't think it has because the dollar is falling in value so it would devalue it too much against the Euro. Reason i'm responding is they have been devaluing it artificially when it gets to high. So while its not pegged, its still closely controlled.
 
those articles you quote are bullshit. I can't tell you the number of times cnn/nyt has been called out on its financial fake news, please don't quote cramer next. a dollar yen chart does not reveal the true value of paper money, you are not the only one to be fooled by this. Its being devalued, the people in chna know it, the chna gov threatens it once or twice a year, respectable financial journalist know it, sorry.
 
PeaKr said:
those articles you quote are bullshit. I can't tell you the number of times cnn/nyt has been called out on its financial fake news, please don't quote cramer next. a dollar yen chart does not reveal the true value of paper money, you are not the only one to be fooled by this. Its being devalued, the people in chna know it, the chna gov threatens it once or twice a year, respectable financial journalist know it, sorry.
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It's pretty simple, actually. If yuan devaluation means I can buy less with 1 USD than I used to, then you simply don't know what "devaluation" means. Insert Inigo Montoya quote here.
 
Romale23 said:
There is talk about them doing another de valuation round. I don't think it has because the dollar is falling in value so it would devalue it too much against the Euro. Reason i'm responding is they have been devaluing it artificially when it gets to high. So while its not pegged, its still closely controlled.
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Yep, it's closely controlled. I called it a managed float.
 
PeaKr said:
those articles you quote are bullshit. I can't tell you the number of times cnn/nyt has been called out on its financial fake news, please don't quote cramer next. a dollar yen chart does not reveal the true value of paper money, you are not the only one to be fooled by this. Its being devalued, the people in chna know it, the chna gov threatens it once or twice a year, respectable financial journalist know it, sorry.
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Ah, the ultimate trump card, no pun intended, in any argument: fake news :eyeroll:

China is really trying to crack down on outflows of cash from their country to control their people. Xi Jinping has been running a large anti-corruption campaign; for the longest time it was the basic purview of public officials to receive bribes, etc, and a lot of that money fled the country so it couldn't be seized and be a safety cushion if need be. Bitcoin allows for some of that less controlled export of money from China, so they are likely to continue to want to control it more, or try to prevent it.
 
alexyang said:
It's pretty simple, actually. If yuan devaluation means I can buy less with 1 USD than I used to, then you simply don't know what "devaluation" means. Insert Inigo Montoya quote here.
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if that's the case lets try an experiment, why don't you store your wealth in the yuan and see how that works out over the next 10 years, (hint: it'll be worse than the last 10). you can always click on the ggle usd/cny chart when you get sad, which btw is also bullshit since the cny is not set by the market.
 
PeaKr said:
those articles you quote are bullshit. I can't tell you the number of times cnn/nyt has been called out on its financial fake news, please don't quote cramer next. a dollar yen chart does not reveal the true value of paper money, you are not the only one to be fooled by this. Its being devalued, the people in chna know it, the chna gov threatens it once or twice a year, respectable financial journalist know it, sorry.
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Great, let's see all those respectable sources in the the form of links so we can peruse them.
i'd say 2-4 links from different sources for the "chna gov threatens it once or twice a year"
and 6-8 links for the "respectable financial journalist"
You don't need to provide any links at this time for the "people in chna know it", because there are billions of Chinese and I think there are limitation to how long a post can be.
 
PeaKr said:
if that's the case lets try an experiment, why don't you store your wealth in the yuan and see how that works out over the next 10 years, (hint: it'll be worse than the last 10). you can always click on the ggle usd/cny chart when you get sad, which btw is also bullshit since the cny is not set by the market.
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Now you're changing the topic. Of course I'm not going to "store my wealth in the yuan," but that's not because of "devaluation." That's because I don't live in China, don't plan to live in China, don't do business in China, and don't plan to do business in China. I wouldn't store my wealth in the euro or the pound for the same reasons vis-a-vis the EU and the UK.

If you honestly think that the USD buying less CNY than before is "devaluation," then you don't know what "devaluation" is.
 
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