Bitcoin price fall surprised traders and investors yesterday. As always in these cases, people look for the reasons for such a big move in the news. And as most of the crypto media outlet reports that China is behind the recent price fall.
But is really China behind the recent BTC price fall?
It is worth to mention that China’s narrative to embrace blockchain and crypto and sometimes to ban bitcoin and cryptocurrencies is being played like a game to justify the big swings in BTC price.
Of course, China has not been too friendly with cryptocurrencies but the recent news about president Xi urging for blockchain development in the country was heavily promoted like a bitcoin adoption in China to fuel a bullish BTC scenario. Then it comes the fake news about important crypto exchange offices raided by the police in China.
If we look at the Chinese news on the crypto media outlets there is a pattern that can be spotted easily. Every time China “bans bitcoin” it needs to unban it so it can ban it again and this keeps repeating again and again.
The spread of Fake News
According to the local Sanyan Finance portal, a total of 39 exchanges have recently been discovered to violate Chinese regulations. In this context, fake news also appeared in the media, according to which the police also entered Binance offices. Only that the exchange itself denied these rumors. Also, Bithumb denied similar reports while Huobi stated likewise.
“We have heard of this from some media reports. However, we have not received any specific instructions at this point,” – Huobi told the media.
The case was also commented by Binance CEO Changpeng Zhang, who even praised the actions of the authorities. He believes that these types of interventions strengthen the market rather than hit it.
“This is actually a very good thing to happen, cleaning up the industry of scammers and fraudsters,” wrote CZ Binance in response to Dovey Wan , the PrimitiveCrypto Founding Partner.
Bitcoin Panic Sell-Off
Based on the manipulated news a panic sell-off started yesterday (of course, assuming that yesterday’s declines were caused by China fake news) bringing the bitcoin price under $7,000.
Today a price recovered slightly and the price is actually hovering around $7,250 at the time of writing. The Crypto Fear & Greed Index shows extreme fear in the crypto markets which is usually an investment opportunity to go long.
However who knows what big players that move the BTC market are cooking this time and unless we reclaim $7,700 level on the daily charts it may be risky to open long positions.