Glued to the charts in the past few days? We don’t blame you. While watching the price of bitcoin move so rapidly can be interesting, seeing it drop rapidly in a downward trend may have some investors at the edge of their seats.
We’re observing prices in USD sink below the $450 mark at Bitstamp, down a whopping 11 percent in the past twenty-four hours alone.
We saw the bitcoin price remain somewhat stable in the $500 range for a couple of days late last week, so the obvious question is: how much lower can it go?
As you’re aware, nobody knows. But many of us are in agreement that the downward trend can be attributed recent happenings in China.
Last week, news came out that the People’s Bank of China would be barring financial institutions in the country from getting involved with bitcoin exchanges, and thus, close the accounts of these exchanges (which include BTC China and Huobi).
Despite whether or not the claims are real, I didn’t report on them because they didn’t come from the mouth of the source (and given the amount of false news we’ve seen before for the sake of manipulating the markets, I’d rather not perpetuate until we get 100 percent confirmation).
Those reports didn’t stop investors from panicking, which of course, brought down the price.
Another report dated 29 March from Want China Times resounded the news that financial institutions would be forced to sever ties with bitcoin exchanges.
Where do you think the price of bitcoin goes from here? Do you agree that the price drop is attributed to China?