Could the recent announcement by BTC China, China’s largest Bitcoin exchange to stop trading come September 30th; spell doom for Bitcoin?
What Was The Announcement?
BTC China said in a tweet Thursday that it will close down its operations by Sept. 30 as Chinese authorities crack down on cryptocurrencies.
The tweet says, “After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30.
It is important to note that the BTCChina announcement specifically says they will stop all trading, it does not say that this is a permanent move. It may well prove to be a temporary measure. Insiders are suggesting that once the exchanges have been licensed by the Chinese government they will resume trading. Afterall it is highly unlikely that the forward looking Chinese are going to miss out on the most important change to global finance since the departure from the gold standard.
Fund-raising Through Cryptocurrency Is Rejected
If you remembered last week, China was one of the first country to crackdown on cryptocurrency exchange starting with the rejection of fund-raising through alt coins in a process known as an ICO (Initial coin offering).
It is something similar to Initial Public Offerings (IPOs) of public-listed companies in the stock market. Yet, unregulated and possibly illegal in many countries including the United States.
Double Whammy From China
With China accounting for almost a quarter of Cryptocurrency trades worldwide, and home to some of the world’s biggest Bitcoin miners; the news has sent shockwaves across the globe. And the result, Bitcoin is now on a downtrend seeking its support level. Something it has done many times in the past before shooting back to all new highs.
Down 25% In Just One Week
With the Bitcoin price reaching an all-time high touching $5,000 USD just a few weeks ago, it had since fallen down to almost $3,000 USD. This pretty much wiped off billions off Bitcoin’s value. And it will be looking that way for the next few days or weeks.
Five Day Losing Streak Set To Continue
With Chinese Bitcoin investors looking to sell off their position, will put pressure on the Bitcoin price going down as we get nearer to the September 30th dateline. All said and done, we just have to brace for more shocks coming our way.
North Korea Set To Launch Another Missile, This Time It Is Nuclear
Can you imagine what it will be like if North Korea were to launch a nuclear missile into Japan? All hell will break loose, which will impact the world’s economy – will Bitcoin live up to it's safe haven reputation in a crisis?
Keep Calm And Hold
In the face of uncertainties, just keep calm for now. If there’s an investment opportunity as huge as Bitcoin, then grab it, if not do the smart thing and hold.
Category: Team WhaTechCompany profile: Tech junkie by profession and passionate about anything from the digital world, movies, games and reading. He loves writing and hopes you enjoy his writing as much as he does. Eza, is also known as Don in the virtual world, but don’t him me wrong, he's not a mafia type he's really a nice chap and a devout family guy.