Bitcoin Price Crashes Following Bad News from China

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With news coming from China that deposits into Bitcoin exchanges were being banned, the price of Bitcoin tumbled heavily, nearly 50% overnight, before recovering slightly.

“Today we received notice from our 3rd party payment processor and they essentially have cut us off from allowing customer deposits into BTC China’s Bitcoin exchange,” said Bobby Lee, CEO of BTC China in a phone interview with CNBC, confirming the rumors first posted on Chinese messaging network Weibo.

http://www.reddit.com/r/Bitcoin/comments/1t5ofu/please_sticky_usa_suicide_hotline_1800273talk/

Just a week ago, Lee took the stage at the Inside Bitcoins conference in Las Vegas to explain why China is #1 for Bitcoin and why Bitcoin exchanges are legal and people have the right. And over the last few months Bitcoin has seen a rally predominantly driven by trading volume out of China.

There are rumors that the the People’s Bank of China held meetings on Monday with the top payment processors on Monday, explained Lee. He admitted that BTC China does not have a direct line of communication with the PBOC.

“We’re still holding a lot of deposits, and withdrawals will still be allowed. No need to panic,” Lee offered. “We’re looking for alternatives.”

But many investors are panicking. Considering that a few weeks ago the price was at $1200 per Bitcoin, many people had digital wealth beyond their wildest dreams. Now with the price less than half of that, it is telling that the top voted post on the Reddit forum for Bitcoin is the suicide prevention hotline.

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5 Responses to Bitcoin Price Crashes Following Bad News from China

  1. […] Bitcoin Price Crashes Following Bad News from China […]

  2. […] surrounding Bitcoin in Asia has been tumultuous. The People’s Bank of China (PBOC) notified 3rd party payment processors to stop allowing RMB deposits in China. The Bitcoin market crashed, heavily, then […]

  3. […] we received notice from our 3rd party payment processor and they essentially have cut us off from allowing customer deposits into BTC China’s Bitcoin exchange,” said Bobby Lee, CEO of BTC China, the world’s largest Bitcoin exchange in December […]

  4. […] we received notice from our 3rd party payment processor and they essentially have cut us off from allowing customer deposits into BTC China’s Bitcoin exchange,” said Bobby Lee, CEO of BTC China, the world’s largest Bitcoin exchange in December […]

  5. […] we received notice from our 3rd party payment processor and they essentially have cut us off from allowing customer deposits into BTC China’s Bitcoin exch…,” said Bobby Lee, CEO of BTC China, the world’s largest Bitcoin exchange in December […]

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