The cryptocurrency world continues to suffer from a downward price trend with all cryptocurrencies tumbling like a ball down the hill with Bitcoin declining to a value below $4000.
Rumors have been flowing in since the last weekend that China will ban cryptocurrency exchanges and this effectively has led to a panic situation with investors and traders dumping their Bitcoin, Ethereum and other cryptocurrencies trying to cash out and evade massive losses.
New reports have surfaced that claim that China will not only ban Bitcoin exchanges, but will also start a cryptocurrency of its own – a development that will likely have a negative impact on Bitcoin.
Jihan Wu, who runs the biggest mining operation in the world, has made some rather startling statements on Twitter suggesting that something is indeed going on in China. He wrote: “Bitcoin is not banned in China, but only Bitcoin exchange business is about to be banned (according to rumor).”
We are told there is no official confirmation, but the rumors are “likely-true-rumors.” Wu continued to publicly state in a series of tweets: “None of the Bitcoin exchanges in China has the licenses that should be required for order book exchange. Such law is older than Bitcoin.
While there is no confirmation from Chinese financial and banking regulators, rumors are swirling China’s years long statements on plans to issue a digital currency of their own, like bitcoin, might be reaching a state where the country is ready to implement their aims.
Because nothing has been confirmed, the situation has turned rather ripe for exploitation and manipulation. Those who have been hoarding huge amounts of cryptocurrencies may have cashed out a part of their holdings and the massive sell-offs has led to price decline. More and more people join in on this sell-off spree and this forces the prices down further.
We will continue reporting in the latest downward spiral as the story develops.