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Old news suddenly gets picked up on social media, sparking an instant crypto price crash.
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MARKET UPDATE
Bitcoin (BTC) suddenly lost $2,000 in an hour on Sept. 24 as what appeared to be old news over a Chinese regulatory ban hit social media.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it abruptly fell from $45,000 to near $42,000.
The kneejerk reaction came as a memo from China’s central bank, the People’s Bank of China (PBoC), began to circulate online, criminalizing practically all cryptocurrency activity except possession.
As commentators noted, however, the PBoC originally released the updated guidance on Sept. 15 but posted it online on Friday, Sept. 24.
Nonetheless, what has now become a classic source of BTC price pressure — “FUD” over Chinese bans — was quick to take its toll on market sentiment.
The market already heard the rumors around mid-September, and reacted on those fud by then. DON’T FALL FOR THE FUD AGAIN. https://t.co/pew1kyCZ3d
— Molly (@bigmagicdao) September 24, 2021
“Markets are always reacting so heavily to FUD. Impressive,” Cointelegraph contributor Michaël van de Poppe reacted.
Similar reactions had come about as a result of the alleged impending failure of Chinese property giant Evergrande, this having been a niche topic for a significant period before mainstream media attention sparked knock-on effects across the cryptocurrency and traditional markets.
Altcoins, meanwhile, joined Bitcoin in shedding value following the China narrative returning.
Related: Shanghai Man: RMB stablecoin in Shanghai, Evergrande FUD, and FTX gains ground
Ether (ETH) was down over 7% at the time of writing, having lost the $3,000 support line once more.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView
The top 10 cryptocurrencies by market capitalization traded up to 9% lower on hourly timeframes.
