A headline that snuck its way on to the Sina Weibo live news feed on the 18th of March (but discovered late this week) is responsible for a sharp decline in the price per bitcoin, but much to the relief of traders, has been retracted.
The then-unconfirmed report indicated the People’s Bank of China (the country’s central bank, also known as PBOC) would ban all bitcoin-related activity come the 15th of April.
A follow-up report posted on the above-mentioned news feed sounds much more reasonable, noting that the People’s Bank of China did make a statement related to bitcoin, but not in the way of banning it completely.
The statement instead noted that the PBOC would be looking to strengthen regulatory oversight over the use of bitcoin (much like the state of New York is trying to do).
That report was backed by a update posted by the PBOC themselves on their Weibo social network page that said the ban news was merely an error.
By that point, the damage had already been done. Traders reacted swiftly, bringing the price per bitcoin to 3,213 CNY (about $516 USD) on the Huobi Chinese exchange.
As of this writing, the price has come up to about 3,539 CNY at Huobi.