New York, NY -- (SBWIRE) -- 05/06/2014 -- As a result of halting financial institutions from transacting bitcoins to restrain risks by China’s Central bank, domestic banks expressed their intention to close their bitcoin accounts hurting Chinese Bitcoin exchanges.
It was in December 2013 when the People’s Bank of China hurdled the buying and selling of bitcoins nor its linked products. This resulted to the Agricultural Bank of China Ltd. – a sub-branch in Hangzhou and the Industrial & Commercial Bank of China Ltd expressing their intention to close their account in BtcTrade. The veto was due to the rising concerns about the risks that bitcoins may pose to China’s asset controls and monetary stabilization once trading has surged.
Bullish or Bearish?
Despite the craze about bitcoin suspension in China, bitcoin exchange rate has surprisingly a fine but vigorous consolidation of between $452 and $440 resistance. According to Reporter Bitcoin Market Analysis, “if t were not for the most recent news out of China, consolidation at $500, which was strong, may have taken place by now”. However, the exchange rate, with its strong base around $450, is ready for another consolidation at a fair value of $500. It is indeed a good projection for a long term bullish market, but everything is in pending now while we keep an eye of what will happen next with China’s news of the halting of BTC China’s transactions.
Hopeful Bitcoin Market
Is it going to be an updward market for bitcoin exchanges in the years to come? Certainly, it would only be a matter of time for the bitcoin market to reverse its current trend, factoring in the optimistic news supporting bitcoins as a currency of choice, growing number of online merchants adopting bitcoins as a payment option, and a steady growth of bitcoin investors, not to mention to the continuous innovation on the technology governing this virtual currency.
The Central Bank is keeping an eye on the perils of using bitcoins. It is not a currency, but an investment target, mentioned Sheng Songcheng, Monetary Authority’s Statistics Department’s Head mentioned in one of her interviews in Beijing earlier this year.
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