Things are once again looking quite bad for the cryptocurrency sector as a whole. All currencies have taken yet another hit in terms of value and it does not appear this situation will change over the next few hours. The Bitcoin price lost another 5.58% overnight, although no one knows for sure why this is happening exactly. It is rather evident this situation will need to be improved sooner or later, though.
What is Going on With the Bitcoin Price?
It is evident the Bitcoin price is still in a very volatile phase right now. Despite some big gains earlier this week, things are slowly heading back in the wrong direction again. Although the Bitcoin price still holds its own around the $3,500 mark, for the time being, it is evident things may head toward $3,000 in the coming days. That would be a rather unfortunate turn of events, especially when considering there is no valid reason for the Bitcoin price to go down in the first place.
More specifically, the news coming out of China should, in theory, only affect Chinese Bitcoin users. Just because the main exchanges are halting trading at the end of October 2017 – which is still six weeks away, mind you – doesn’t mean Bitcoin itself has suddenly become worthless. Moreover, China only represents 12% of all Bitcoin trading volume, making it a blip on the radar when looking at the bigger picture.
It is true the Bitcoin price initially relied on the Chinese traders first and foremost. However, that situation has changed quite a bit when the PBoC introduced new AML requirements for all exchanges earlier this year. All companies successfully complied with these demands, even though they were forced to suspend withdrawals for weeks on end. Even then, the Bitcoin price only budged briefly and quickly returned to its original value afterward.
It is during times like these a lot of people to forget Bitcoin is a global cryptocurrency and not a token used by China first and foremost. The situation affecting Chinese Bitcoin exchanges has nothing to do with the Bitcoin protocol whatsoever. Moreover, the rest of the world shouldn’t care about what is happening in China, as that country will always do its own thing regardless of what the rest of the world thinks is better. This is not a precedent whatsoever, and it will most likely turn out to be a temporary situation in the end.
If more people kept this information mind, the Bitcoin price wouldn’t go through another bearish period right now. Unfortunately, it is what we have to deal with right now. With the Bitcoin price losing another 5.38% in value overnight, it is evident things are not evolving in the right direction whatsoever. Despite $1.5bn in 24-hour trading volume, it appears to be a matter of time until the price drops below $3,500 once again. Whether or not next week will bring any improvements, remains to be seen.
What is rather interesting is how the Bitcoin price is still hovering around $3,000 in China for the time being. This shows the local users are not giving up on Bitcoin just yet, despite some major selling pressure across OKCoin and Huobi right now. Bitfinex, Bitstamp, and bitFlyer all generate a lot more volume and value Bitcoin at $3,500 to $3,540. There is no reason to push the Bitcoin price down any further whatsoever, as China’s trading volume is all but drying up. It is now time for the rest of the world to determine the proper Bitcoin value, without being weighed down by the Chinese government in any noteworthy capacity.