Old News of China Banning Crypto Picks up Steam, Bitcoin Tumbles to $41,000
The price of Bitcoin momentarily surpassed $45,000 today, before a sharp decline saw the price decrease to $41,000 in the span of 3 hours. The culprit for the sudden 8.5% downturn was the news coming from China – the Chinese Central Bank reportedly decided all crypto-related transactions are illegal within the county’s borders. However, the news was known for weeks, which means that the market had in large part already responded to the new regulatory changes.
Despite this fact, Bitcoin and other cryptocurrencies got caught up in the selloff frenzy spurred by worried investors when the news started circulating in large news media outlets.
Bitcoin was trading as high as $45,033 before “FUD” settled in and pushed the price towards $41,000.
In the last two-week period, the cry...