Bitcoin's surge over the past few years has fueled concerns of a bubble and prompted warnings of a potential crash from skeptics including JPMorgan Chase & Co.'s Jamie Dimon and billionaire investor Howard Marks.
This Monday some sources added more details to this uncertain situation reporting that while Chinese authorities were planning to ban bitcoin trading on domestic exchanges, they had no plans to stop non-commercial, over-the-counter transactions. The exchange has said that it'll cease trading for China-based customers from September 30.
The cryptocurrency tumbled to as low as 3,720.01 on the Bitstamp exchange before recovering to trade around 3,810 by 1524 GMT, still down 8.7% on the day.
Last week, China banned initial coin offerings (ICOs), referring to them as an unauthorized fundraising toolthat may involve financial scams.
All in all at that time China's central bank didn't make any official confirmation or denial, which was definitely good news. "And speculation on ICOs -- licensure and engagement with government will help propel this industry forward".
During the rally, it failed to break the price record set in June and gain on Bitcoin.
The news has hit the price of bitcoin already, falling from $3,860 to $2,457 as the news broke. Earlier this this year, Ethereum gained global notoriety following a runaway increase in value that triggered a frantic GPU purchasing spree that left the PC gaming world reeling over graphics card availability and rampant price increases.
"And the fact that bitcoin is consistently growing in its use and its value has to say something", McAfee said.
The rumor mill is working wonders at the time of writing, with traders having to consider rumors that the PBoC will be looking to suspend trading on Chinese Bitcoin exchanges. Many currencies regained substantial portions of those losses by this past weekend, only to find that the bitcoin ban caused prices to drop early in the new week.
Beitou China's pool (pool) and other business will not be affected, continue to normal operation. One year ago, Bitcoin was trading for around $600. Other indications from a technical perspective like the Relative Strength Index or RSI has also indicated that prices of Bitcoin could be more oversold than anything at the moment.
The two largest exchanges in China Huobi and Okcoin are expected to reveal closure announcements today.
Bron: Stocks Gazette
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