It seems that the drama with the PBOC and regulations in China is becoming less and less significant, as these news don’t seem to have as much impact on the price. In fact, the price is on the way to recovered to pre-crackdown prices as Bitcoin is trading at $1035 on Bitstamp. On Feb. 9th, the PBOC released quite a threatening statement which tanked Bitcoin’s price 10%, on the bright side it looks like the worst is behind and Bitcoin is setting a new price floor at $1000.
While Bitcoin is receiving scurrility in the East, the Western markets are showing massive support for the cryptocurrency. We can see that the Chinese markets are loosing dominance because there is now a premium of $40-50 for the Western markets, while the value per Bitcoin on the Chinese exchanges is lower than average. This chart from Tradeblock shows the price difference best:
It’s only expected that Bitcoin’s price would be cheaper in China as many users refuse to convert their Yuan into Bitcoin for the fear that they wouldn’t be able to withdraw the coins later. However, some more opportunistic traders are also doing just the opposite which is buying up those “cheap” coins in the hopes of the price stabilizing again once cryptocurrency withdrawals turn back on.
People were doing the same thing when MtGox was going under, they bought coins on MtGox much under market price, since they bet on the exchange to returning to normal. Unfortunately for them we all know how that situation turned out – MtGox filed for bankruptcy and every investor took a loss.
Other relevant news include the fact that Investing.com, one of the most popular investment resources has labeled Bitcoin as a “strong buy”. According to their technical summary chart for the cryptocurrency, Bitcoin is worth buying at the moment:
It seems that traders are optimistic about Bitcoin’s support. However, in such a volatile free market any hint of drama can send the chart sideways. With the Bitcoin ETF decision coming March 11th, tensions will only increase as traders bet on the outcome.
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