BTC price plummets 10% on word from China

Today, at the Boao Forum for Asia 2014, the President of the Central Bank of China, Zhou Xiaochuan, announced: “Bitcoin is more like tradable assets rather than payment currency, the issue of PBOC banning it or not doesn't ever exist.”

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BTC price plummets 10% on word from China

Today, at the Boao Forum for Asia 2014, the President of the Central Bank of China, Zhou Xiaochuan, announced: “Bitcoin is more like tradable assets rather than payment currency, the issue of PBOC banning it or not doesn't ever exist.” 

 
The BTC price shot up by 20 % immediately after the news.
 
 
Yesterday, Bitcoin’s value fell by 10% today from around US$ 450 to as low as US$ 403 and is currently hovering around the US$ 400 mark at the time of this writing. 
 
The reason for the drop after almost a week of relative stability, which seems like eternity in the world of Bitocoin, was once again news from China. 
 
Chinese businesses apparently started to receive official deposit shutdown notices from banks, which seems to confirm recent suspicions that government-lead crackdown is imminent. 
 
Exchanges will stop account recharging via bank accounts between now and April 15. 
 
Huobi freezing bank deposits 
 
Huobi, the Chinese BTC exchange, has reported: 
 
“At roughly 10:00am today, we received notice from the Zhongguancun Branch of ICBC (Industrial and Commercial Bank) that they had been notified by operations management to cease providing service to Huobi, and would be closing Huobi's ICBC account by April 18.” 
 
The following official announcements were translated from Chinese: 
 
ICBC (Industrial and Commercial Bank of China) superiors did receive a notice to stop the fire coins network account of the Zhongguancun Branch of ICB, and the deadline is April 18.  
 
China Agricultural Bank 
 
Dear BtcTrade users and the majority of the bitcoin lovers: 
 
“With a heavy heart we make this announcement, that BTCTrade just received a telephone call from our bank the Kejicheng (Tech City) branch of China Agricultural Bank Hangzhou, that if we do not stop using our bank account to conduct Bitcoin related businesses by 4/15 our account will be frozen. Therefore, we are forced to stop all RMB deposits by 4/15 midnight, although withdrawals will not be affected.” 
 
BtcTrade has also stated: 
 
“BTCTrade has always set our sites on the global market since coming online, and we have already registered companies in mainland China, Hong Kong, Japan and the US. We are planning to commence USD services soon, and the Japanese version of our website is already online and operational, and a new version will be online before 4/15.” 
 
Bitcoin community commentary 
 
Michael Moore: “The short answer is that they are only disadvantaging their own citizenship while advantaging others. Given China's meteoric industrial development, this might be a good thing in the short-run. In the long run, I don't think it'll make much difference.” 
 
The Coin Telegraph will continue to monitor and report on the story as it develops.
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