Old FUD, new BTC price dip — Weeks-old China crypto ‘ban’ sparks Bitcoin price drop to $42K
Old FUD, new BTC cost dip — Weeks-sometime China crypto 'ban' sparks Bitcoin toll drop to $42K
Old news suddenly gets picked upward on social media, sparking an instant crypto price crash.
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Bitcoin (BTC) suddenly lost $two,000 in an hr on Sept. 24 as what appeared to be old news over a Chinese regulatory ban hit social media.
Bitcoin vs. China: Don't believe the "FUD"
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it abruptly fell from $45,000 to near $42,000.
The kneejerk reaction came as a memo from China'south central bank, the People's Bank of Red china (PBoC), began to circulate online, criminalizing practically all cryptocurrency activity except possession.
Every bit commentators noted, still, the PBoC originally released the updated guidance on Sept. 15 simply posted it online on Friday, Sept. 24.
Nonetheless, what has now become a classic source of BTC price pressure — "FUD" over Chinese bans — was quick to take its toll on market sentiment.
The market already heard the rumors around mid-September, and reacted on those fud past then. DON'T FALL FOR THE FUD Once more. https://t.co/pew1kyCZ3d
— Molly (@bigmagicdao) September 24, 2022
"Markets are always reacting so heavily to FUD. Impressive," Cointelegraph correspondent Michaël van de Poppe reacted.
Similar reactions had come up near as a result of the alleged impending failure of Chinese property behemothic Evergrande, this having been a niche topic for a pregnant menstruation before mainstream media attention sparked knock-on furnishings beyond the cryptocurrency and traditional markets.
Altcoins suffer with Ether nether $three,000
Altcoins, meanwhile, joined Bitcoin in shedding value following the Cathay narrative returning.
Related: Shanghai Man: RMB stablecoin in Shanghai, Evergrande FUD, and FTX gains ground
Ether (ETH) was down over 7% at the time of writing, having lost the $iii,000 support line once more.
The top x cryptocurrencies by market capitalization traded up to ix% lower on hourly timeframes.
Source: https://cointelegraph.com/news/old-fud-new-btc-price-dip-month-old-china-crypto-ban-sparks-42k-bitcoin-price-drop
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