China Report Surfaces, Bitcoin Price Drops — Here We Go Again

China Report Surfaces, Bitcoin Price Drops -- Here We Go AgainIt’s time again for China to drop a big anti-bitcoin announcement and traders in the cryptocurrency selling off on the news.
And, as in previous occasions, it’s hard to know exactly what China means, or if it’s all trumped up.
The Chinese government reportedly will penalize any of its banks transacting with bitcoin exchanges after April 15. That’s the news that started breaking Thursday. It was reported by some Chinese news services.
The People’s Bank of China had previously warned that nation’s banks to stay clear of bitcoin transactions. Since then, there have been false news reports of a wider crackdown.
Bitcoin traders apparently are treating this most current report seriously. Bitcoin was trading closer to $500 by late morning Thursday. It had been hovering just below $600 less than 24 hours ago.
China’s bitcoin exchanges have yet to acknowledge any stricter policy by the Chinese government, leading many to believe this is yet another runaway rumor.
Meanwhile, one astute Reddit user posted this comment:
“Is anyone else alarmed that any old Chinese website can publish a false rumor which immediately drops the price of bitcoin by 50 dollars.”

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