Today’s Bitcoin Crash

What you need to know:

Why it Happened

  • 2 off the 3 Big Three Chinese exchanges (OKCoin and Huobi) have halted withdrawals for a month, so far BTCC has not but BK would expect soon
  • This means money can’t move out of China via bitcoin
  • The capital flight trade was a big driver of bitcoin speculation

What BK is hearing from the insiders:

  • this move is less about capital flight and more about preventing yet another asset bubble
  • if China wanted to “kill” bitcoin they would just close the exchanges
  • But most of the bitcoin mining is done in China by pseudo-state sponsored enterprises
  • this is about stopping a speculative bubble
  • so far Chinese speculators have hoarded garlic, chili peppers and copper