Bitcoin Value Plummets Following BTC China Shutdown Announcement

GETTYBitcoin's price has launched a recovery after China's exchange shut down

GETTYBitcoin's price has launched a recovery after China's exchange shut down

Bitcoin's value tumbled 15 percent Thursday to about $3,300. Unnamed sources told Bloomberg that Chinese regulators were told of the agenda by a "central bank-led group" considering the risks of cryptocurrency.

BTCChina, one of China's largest bitcoin trading platforms, which also runs an global exchange out of Hong Kong, will stop registration of new users from Thursday, it said on its official microblog. Just over a week after bitcoin hit a fresh all-time high of almost $5,000, the two bits of news from China have prompted a two-stage wave of price declines.

"China is practically building a cottage industry for mining and exchanging bitcoin and other cryptocurrencies", he noted.

Bitcoin captivated the attention of financial markets this summer as the developer community embraced a new mechanism to improve usage and avoided what was labeled as a potential civil war, raising the profile of the digital ledger and fueling the speculative price rise.

On Tuesday, at the Barclays Financial Services Conference, Jamie Dimon, the CEO of JPMorgan, called Bitcoin a fraud and said that the bubble will ultimately burst. BTC China has also stopped registering new users, it said in a statement posted on social media.

As if the Bitcoin price has not retraced enough already, more volatility is erupting across all markets. On September 2, Chinese regulatory authorities announced that initial coin offerings (ICOs) are considered illegal, and the country banned projects that receive funding through the practice. Both cited the recent notice from the People's Bank of China that banned fundraising through initial coin offerings (ICOs), or token sales. As for exchanges' prices, Bitcoin is trading at about $2904.64 on OkCoin, $2887.97 - on Huobi, and $2908.37 - on BTCC at press time. It was reported last week by Caixin that China was contemplating shutting down cryptocurrency exchange trading, and further confirmation of that order arrived today.

The announcement was viewed as one way for Beijing to get power over crypto-currencies, which are made using blockchain tech and are bought and sold online without any regulation of the government. Beyond that, according to The Verge, three of China's main exchanges made up almost half of all of the global market share for the trailing 30 day period up to the announcement.

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