Old news suddenly gets picked up on social media, sparking an instant crypto price crash.
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.
Bitcoin vs. China: Don’t believe the “FUD”
The kneejerk move 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 online today.
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.
“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 suffer with Ethereum under $3,000
Altcoins meanwhile joined Bitcoin in shedding value following the China narrative returning.
Ethere (ETH) was down over 7% at the time of writing, having lost the $3,000 support line once more.
The top ten cryptocurrencies by market cap traded up to 9% lower on hourly timeframes.