Bitcoin was rising greatly for last few days. It even touched $5000 mark and was standing strong around $4600-$4700 but then a news came from Chinese government that they're banning the ICO's in China calling it illegal and no viable means of raising money through crowd funding for something which don't even exist and has no guarantee to come into existence in near future too.
This announcement all of a sudden made a huge impact on the market and Bitcoin tanks by $400 and fell to $4100. All the alt coins turned into red and Market capitalisation fell by $12 Billion all of a sudden. This was huge amount which left the crypto currency market just after a minute of announcement.
But Bitcoin slowly recovered its value value within a day or two and got stable around $4300. Market capitalisation was also recovering pretty fine until yesterday when a person posted a tweet on his official Twitter account and all the Bitcoin market tanks with that tweet.
Let's Talk About Mr. Charlie Lee
Charlie Lee, the founder of Litecoin, tweeted last night on his Twitter account that 'Looks like China is finally banning local cryptocurrency exchanges. Just HODL what you have accumulated'. This post went viral within a matter of seconds and the market started to tank.
Bitcoin, which was stable at $4300, tanked to almost $3800 today just because of a single amatuer tweet.
Many people believed that this move by Charlie Lee was very immature and unprofessional. Without having any solid proof of this disastrous news, how could he say something like that?
There were no official announcement by the Chinese government regarding any ban on Crypto exchanges. But still Mr. Lee took things in his own hands and posted a self along with that controversial status on twitter.
That single tweet by Mr. Charlie had done a significant further damage to the crypto market. The total market capitalisation fell further by $16 Billion and current market capitalisation stands at mere $135 Billion, losing a great amount because that immature move by Litecoin's founder.
Many people believed and even discussing on many Bitcoin forums that this was a conspiracy by Chinese government to drop the price of Bitcoin and buy it cheap so that it can be profited hugely out of it and pay their outstanding debt. Well, if this conspiracy was true even for a second, then it proved very successful on tanking the market by a great percentage and a whopping $16 Billion amount.
Currently Bitcoin is trading $3870 at the time of writing this and market is still in very much pressure even after 24 hours has been passed after that tweet. Market is trying to recover but BEAR's grip has a strong hold on current market condition.
Conspiracy or not, Mr. Lee had done a wrong thing which he later regretted and deleted that tweet from his official Twitter account. But whats done is done and market is still suffering the outcomes of that move.
Let's just hope everything will be fine soon enough and market recover as well as flourish as it was a few days ago.
Thanks for reading..!!
Author : @cryptonet
Even if china did ban bitcoin, it would just give us another great buy opportunity. We should ban china from bitcoin and move on without them.
Thanks Mr. lee for the opportunity to add to my positions! Now I'm truly going to HODL until I'm rich haha
Bitcoin's market cap is tiny compared to China's government debt. Wouldn't they simply sell some of their massive holdings of U.S. Treasuries rather than ding around with Bitcoin if they wanted to raise some cash?
Not a wise move by Mr. Lee
Bitcoin adjusted to it's quite impressive trend line...nothing more.
https://poloniex.com/exchange#usdt_btc - look at one month one day chart
Charlie Lee seems more concerned with everything OTHER then Litecoin on a daily basis. Having said that, I thought he probably shorted the market before his post, made a killing there, and bought in even more when it bottomed out further. Charlie needed money ;)
Great and through article about the recent events...I saw when Charlie sent out that tweet and just thought WTF..no benefit to him and now he deleted it.
Good article, thanks. But I think there is more to this than just one Tweet. There is a great deal of uncertainty around and Jamie Dimon (JP Morgan CEO) made an official statement where he labelled Bitcoin as a "scam"
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I will not blame Lee, he sounded very genuine and he just posted what he got to know through his sources. He did not expect that market will crash because of his tweet. Secondly, market recovered after some hours. market is currently at 3900 not because of Lee, but because some other sources also confirmed that Chinese banning the exchanges. This is article is overblown of Lee's role.
Yes, while Mr. Lee's tweet didn't help the situation, there is much more going on than that.. But on the flip side, this is a great opportunity to Buy Low! ;)
When the exchanges bleed, so does my bank account ;)
If it drops some more I might stock up on some more coins.
Definitely a bad move by him and it will all recover soon.
In Charlie we trust.
WSJ reported it first, why not rail on them?
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