|About a year ago, bitcoin trading in yuan comprised about 98% of all bitcoin trading. That fell to less than 15% by this month as Chinese authorities have clamped down.|
I wonder how the writer can know this.
And it would seem if the Chinese are responsible for the recent price collapse, then the Chinese amount of trading would have increased, not decreased. Someone is selling massive amounts of Bitcoin for fiat, and pushing the price down. Selling is still "trading", so he seems to be saying that either the Chinese trading volume has declined significantly (so why is the Bitcoin price down) or that others' trading volume has increased MASSIVELY with the Chinese staying constant (seems unlikely).
And a high volume of trading isn't what's important to the price. It's the direction (buying or selling) that matters.
It seems to me that since the Chinese announced something about not wanting to have exchanges trade in Bitcoin in China loads of Chinese Bitcoin holders have decided to dump their Bitcoin for........God knows what?
Yeah, it's volatile as hell. But most of the people that I know that own Bitcoin just hold it. It goes up they're in a good mood, it goes down they're bummed out, and sit, and wait.......