Bitcoin (BTC) suddenly lost $2,000 in an hour on Sept. 24 as what appeared to be old news over a Chinese regulatory ban hit social media.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
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 move came as a memo from China’s central bank, the People’s Bank of China (PBoC), began to circulate online, criminalizing practically all cryptocurrency activity except possession.
As commentators noted, however, the PBoC originally released the updated guidance on Sept. 3.
If you saw any Chinese regulatory Fud again, that announcement was posted on September 3rd. Don’t fall for it.https://t.co/KFghcCiqN4 pic.twitter.com/ZUPHPCVASp
— Molly (@bigmagicdao) September 24, 2021
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.
“Markets are always reacting so heavily to FUD. Impressive,” Cointelegraph contributor Michaël van de Poppe reacted.
Similar reactions had come about as a result of the alleged impending failure of Chinese property giant Evergrande, this having been a niche topic for a significant period before mainstream media attention sparked knock-on effects across the cryptocurrency and traditional markets.
Altcoins suffer with Ethereum under $3,000
Altcoins meanwhile joined Bitcoin in shedding value following the China narrative returning.
Ethere (ETH) was down over 7% at the time of writing, having lost the $3,000 support line once more.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView
The top ten cryptocurrencies by market cap traded up to 9% lower on hourly timeframes.
Source: Cointelegraph
