Bitcoin & China’s Price Influence


China's Influence over Bitcoin
By: James Ross | CEO HedgeChatter | July 10th, 2018

Everything from Tether, the Credit Card Companies pulling purchasing ability, Hacks, Scandals, Major FUD Announcements, and even concerns over Bitcoin Futures.

After diving into historic moves using correlated news with subsequent Bitcoin price changes, it becomes clearly evident whats driving the up's and down's in overall price.

December 2013 Bitcoin Falls 63%
(China Restricts Banks’ Use of Bitcoin)

Thursday DEC 5th | BTC Reaches All Time High of $1,139.00
Thursday DEC 5th | China Restricts Banks’ Use of Bitcoin
Saturday DEC 7th | BTC Drops to $673.00
Wednesday DEC 18th | China's Largest Exchange Blocks New Deposits
Wednesday DEC 18th | BTC Drops to $420.00
SUMMARY: Due to the events above, less than two weeks after Bitcoin’s ATH, Bitcoin lost 63% of its value.

January 2014 - Jan 2016 Bitcoin Continues Slide Down
(China Builds Massive Bitcoin Mining Rigs, Generating Millions Per Month in Mining Fees)

JAN 6th 2014 | China Bites Into Bitcoin
AUG 12th 2014 | Roaring Fans to Liquid Baths, China's Cryptocurrency Rigs are Serious Business
FEB 6th 2015 | Inside the Chinese Bitcoin Mine That's Grossing $1.5M a Month

January 2016 - Jan 2017 Bitcoin Begins Climb Up Again
(China Continues Mining & Focuses on Exchanges )

JAN 22nd 2016 | China Wants to Launch its Own Digital Currency
MAY 4th 2016 | Look Inside a Secret Chinese Bitcoin Mine
JUN 6th 2016 | Did China Drive Bitcoin's Price to 2016 Highs?
SEP 6th 2016 | Chinese Bitcoin Mining Developer Canaan Acquired for ¥3 Billion
DEC 30th 2016 | China is Behind the Latest Bitcoin Craze

January 2017 Bitcoin Falls 35%
(China Stops Citizens From Moving Money Out of Country)

Thursday JAN 5th | BTC Reaches New All Time High of $1,183.00
Thursday JAN 5th | China will introduce new measures to stop its citizens moving money out of the country
Thursday JAN 5th | BTC Drops to $762.28
SUMMARY: Due to the events above, less than one week after Bitcoin’s new ATH, Bitcoin lost 35% of its value. It’s also important to note that China at that time accounted for 90% of BTC Trades.

February 2017 Bitcoin Loses 12%
(China's Biggest Exchanges Stop Bitcoin Withdrawals)

Thursday FEB 9th | BTC Climbs Back to $1,088.04
Thursday FEB 9th (Afternoon) | Two of China's Biggest Exchanges Stop Bitcoin Withdrawals
Thursday FEB 9th | BTC Drops to $958.33
SUMMARY: Due to the events above and, on the same day, Bitcoin lost 12% of its value

March 2017 Bitcoin Drops 23%
(China's Biggest Exchange Announces Withdrawal Halt)

Wednesday MAR 15th | BTC up at $1,256.62
Wednesday MAR 15th | Chinese Bitcoin Exchange BTCC: Crypto Withdrawals ‘Will Resume’ March 15
Saturday MAR 18th | BTC Drops to $966.85
SUMMARY: As China re-opened the ability to withdraw on Mar 15th, a significant volume of selling began and three days later Bitcoin lost 23% of its value.

May 2017 Bitcoin Jumps 36% in 5 Days
(China Exchanges Resume Withdrawals)

Wednesday May 31st | BTC at $2,197.13
Wednesday MAR 15th | Chinese Exchanges Resume Withdrawals, Bitcoin Likely to Surge
Saturday Jun 5th | BTC Jumps to $2,999.91
SUMMARY: As China regulation fear subsided, Bitcoin jumped 36% in 5 days

September 2017 Bitcoin Falls 40%
(China to Shut Down Crypto Exchanges)

Friday SEPT 1st | BTC Reaches New ATH at $4,909.91
Friday SEPT 8th | China planning to shut down local crypto-currency exchanges
Friday SEPT 15th | Bitcoin value plummets after China orders trading in currency to cease
Friday SEPT 15th | BTC Falls to $2,977.59
SUMMARY: China impending regulation and then outright crypto ban causes exodus out of Bitcoin resulting in a 40% drop in two weeks.
IMPORTANT NOTE: Chinese traders then found a way to bypass the regulation by using P2P and VPN services to connect with offshore exchanges so they could continue participating in Crypto.

February 2018 Bitcoin Falls 68% in 45 Days
(China Found Exchange Bypass and Locked it Down in Firewall)

Sunday DEC 17th | BTC Reaches New ATH at $19,898.80
Monday DEC 18th | China found the ”bypass” and applied a mass access list in their Chinese firewall blocking all connections to “out of country” exchanges and also began a systemic crackdown on Bitcoin Miners. This news did not come out until early January 2018 and continued pushing through February 2018, forcing downward pressure on Bitcoins price.
Tuesday FEB 6th 2018 | BTC Falls to $6,227.01

CHINA SUMMARY:
By China blocking its people from participating in crypto trading, the new ATH was not sustainable. Regardless if Coinbase was signing up over 100,000 new accounts per day, without the buying power of China, the demand and trading volume once again quickly faded and Bitcoin lost 68% of its value in about 45 days.


UPDATE
By: James Ross | CEO HedgeChatter | August 14th, 2018

August 2018 Bitcoin Falls 26%
(China Bans Bitcoin Mining)

Tuesday JUL 24th | China Bans Bitcoin Mining