Did the Unconfirmed News of Binance’s Office Shutting Down in China Cause the BTC Price Crash?
- News publication reports Binance office in China shutting down
- Binance CEO previously stated the reports of the exchange having an office in Beijing is just a rumor
- Meanwhile, Bitcoin price lost over 8% valve, wiping out all the gains made in late Oct.
Today, Bitcoin lost 8.75% of its value after BTC price flash crashed from $7,800 to $7,400 on Bitstamp.
We had already dropped under $8,000 but it has been after a few hours when things escalated and Bitcoin dropped like hard rock, losing $400 in a few minutes.
Today’s loss has the leading cryptocurrency retracing back to the level where the third-largest one-day rally started.
Around this time, the news titled “Binance's Shanghai office shut down following police raid, sources say” was published on The Block.
Given that it covers the world’s leading cryptocurrency exchange Binance, it certainly created a stir among the crypto audience. However, to get more detail about this, you would have to pay $18.
But you might not have to after all because as per the reaction this news has created on CT, Binance shutting down its doors in China isn’t really the case. Also, a trader named Wolf posted the entire article for people to read.
Full transcript: pic.twitter.com/2aiLmuTsMG
— wolf (@ImNotTheWolf) November 21, 2019
The media publication reported that Binance’s Shanghai office has shut down its doors “following a recent police raid” citing an unnamed source. This office apparently had around 50-100 employees along with executives working at the office.
However, recently in an interview with Bloomberg, Binance CEO Changpeng Zhao cleared any reports of the exchange having an office in Beijing, calling them just a “rumor.” The publication reported this and Binance spokesperson stating that they don’t have a “fixed office in Shanghai” and employees work “remotely in China.”
We have reached out to Binance and will update this if and when we hear back from them.
As for if it caused the crash, the news broke out after the drop in BTC price.
Also, several analysts have already been expected a drop in BTC price due to the tight ranging in price, extremely low trading volume, and technical reasons.
Despite the news, Bitcoin's price is currently staying around $7,600 with altcoins losing 7 to 9% of their value in the bloodbath.