Why Bitcoins and Other Altcoins Suddenly Crashed?

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Why Bitcoins and Other Altcoins Suddenly Crashed?

ForexMinute.com – Rumors can be loved by Col. Hans Landa of Inglorious Basterds, not by Bitcoin investors. Facts can be misleading, but rumors are a complete reverse, proves the last 24 hours our favorite virtual currencies went through. This time, it was a reputable Chinese newspaper that fostered an original article, saying that the People Bank of China is excavating the accounts of Chinese Bitcoin exchanges, which was proved to be “false” by many.

Amidst the uncertainty over the rumor’s credentials, Bitcoin prices were plunged heavily in those painful 24 hours, crashing below $500 at once. The plunge also initiated a ripple-effect through other Altcoins, under the effect of which Litecoin, Dogecoin, Auroracoin, Peercoin, amongst others fell notably.

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Notorious Chinese exchanges although have declined to have received any such notifications from their banks, who were allegedly ordered by PBOC to suspend their accounts. BTC China CEO Charles Lee have though feared the scenario in which they will be forced to close their accounts in Chinese banks. “That will kill volumes,” said Lee, “much it did when BTC China temporarily suspended direct deposits in response to a separate December PBOC ruling that sought to curtail Bitcoin trading.”

Furthermore, FMOC has also avoided issuing any public statement regarding the matter. There is although a chance that the regulators are choosing back channels to implement these changes. This process helps the central banks to modify laws without catching the public attentions. Under such steps, only closely controlled banks are informed at first, which might be the case of this alleged rumor also.

We will keep you inform with every update on this matter. Keep watching this space for more.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com