Bitcoin (BTC), which lost $2,000 suddenly in one hour on Sept. 24, was the result of what seemed to be old news about a Chinese regulatory ban hitting social media.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Bitcoin vs. China – Don’t Believe the “FUD”.
Data from TradingView and Cointelegraph Markets Pro tracked the sudden fall in BTC/USD from $45,000 to just over $42,000
As a result, a Chinese central bank memo, the People’s Bank of China (PBoC) began to circulate online. It criminalized virtually all cryptocurrency activity, except for possession.
Commentators pointed out that although the PBoC had originally published the updated guidance on September 15, it was posted online today.
However, market sentiment was quickly affected by what has become a traditional source of BTC price stress — “FUD” over Chinese bans.
Markets heard the rumors by mid-September and responded accordingly. DO NOT FEEL COMpelled to fall for the FUD AGAIN. https://t.co/pew1kyCZ3d
Molly (@bigmagicdao), September 24, 2021
“Markets react so strongly to FUD. Impressive,” Cointelegraph contributor Michael van de Poppe reacted.
Similar reactions were triggered by the impending collapse of Evergrande, a Chinese property giant. This topic was a niche subject for some time before mainstream media attention. It caused ripple effects in traditional markets and cryptocurrency.
Ethereum below $3,000 causes problems for ltcoins
Altcoins joined Bitcoin in losing value after the China narrative returned.
Related: Shanghai Man, RMB stablecoins in Shanghai, Evergrande UUD and FTX gains ground
Ethere (ETH), which was down more than 7% at the time this article was written, had lost the $3,000 support line once again.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView
On an hourly basis, the top ten cryptocurrency market caps traded as much as 9% lower.