The People's Bank of China HQ.
The Chinese central bank building.

When doing my latest technical anaylsis, it was clear BTC China was the anchor dragging the Bitcoin price down. I assumed it was due to an overreaction to the new trading fees, but now the full story is known.

The People’s Bank of China has directed that “third party payment institutions shall not undertake business with Bitcoin hosted sites.”

I don’t know if this is an accurate translation that captures the true meaning of the Chinese statement, but the upshot seems to be that people in China can no longer transfer funds to their local exchanges in order to buy Bitcoin.

We will bring you more coverage of this decision and its economic and market implications as we analyse the news.