As if the Bitcoin price had not retraced enough already, more volatility is erupting across all markets. BTCC, one of China’s largest Bitcoin exchanges, announced they will halt all BTC trading come September 30th. It is unclear how long this situation will last at this time. The market is already responding in a negative fashion, despite the news not affecting the Bitcoin currency itself.
$3,500 is a Realistic Bitcoin Price Target
We have seen a fair amount of Bitcoin price volatility over the past week or so. Ever since Bitcoin hit the US$5,000 mark, it appears bad news has been crawling out of the woodwork as we speak. More specifically, things went from bad to worse when Chinese regulators announced their ban on cryptocurrency ICOs. While none of those projects have anything to do with Bitcoin, holders decided it was an opportune time to reduce their BTC holdings regardless. This was only the first wave of news to push the Bitcoin price down, though.
Ever since that time, Chinese regulators have continued to make media headlines. Rumors began spreading regarding a potential suspension of all Bitcoin trading activity by centralized exchanges. Although none of the major platforms received any official notice to that effect, the Bitcoin price remained rather shaky and eventually continued to move downward despite some buy support at key levels. Earlier today, BTCC confirmed most people’s worst fears, as it will effectively halt Bitcoin trading starting September 30th.
1/ After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30.
— BTCC (@YourBTCC) September 14, 2017
As is to be expected, there isn’t much information available at this time. No one knows when services will be resumed or why this company appears to have been singled out. It is certainly possible other Chinese Bitcoin exchanges will make similar announcements in the coming days, but for now, nothing has been confirmed. BTCC will also no longer accept new user registrations starting today, which indicates this decision has something to do with Know Your Customer or anti-money laundering procedures more than anything else.
The Bitcoin price took a serious beating within an hour of the news breaking. The Bitcoin price went from US$3,850 all the way down to US$3,620 in a matter of seconds, although it appears the downward momentum has been halted for the time being. Do keep in mind this suspension of Bitcoin trading at the BTCC exchange doesn’t affect Bitcoin as a protocol or currency. We are talking about one centralized exchange suffering the scrutiny of Chinese regulators for reasons unknown at this time.
At the time of writing, the Bitcoin price sits at US$3,620, which is way off from the US$5,000 target. A 6.79% dip over the past 24 hours is not entirely shocking, as we have seen bigger losses and gains throughout 2017. This indicates that the China news has had less of an effect than some people would like. It also demonstrates how the Bitcoin community is slowly wisening up and not bothering about regulatory issues beyond its control. Everyone knows Bitcoin will be just fine and only come out stronger. Whether or not that same train of thought will apply to BTCC remains to be seen.
Rest assured there are some forces at play that have been driving the Bitcoin price down. With the noted gains throughout 2017, a lot of people missed the boat and are looking for some cheaper BTC. They will reap the benefit from this “bad news” and the associated panic which ensues among BTC holders. There is no reason to sell Bitcoin now, as the currency is still doing just fine. Centralized companies, on the other hand, may want to rethink their strategy, especially when dealing with the Chinese market.