Bitcoin price tumbles as China orders exchanges to be shut down

WSJ Bloomberg Latest to Claim Bitcoin Exchange Crackdown in China                          Sep 11 2017 at 13:00 UTC by Rachel Rose O'Leary

Chinese authorities are ordering domestic bitcoin exchanges to shut down, delivering a heavy blow to once-thriving trading hubs that helped popularize the virtual currency pushing it to recent record highs. China accounts for about 23 per cent of bitcoin trades and is also home to numerous world's biggest bitcoin miners, who confirm transactions in the digital currency. China's central bank said it could not immediately comment.

The bitcoin and ethereum prices were hit hard over the weekend as there were reports from China that said that the regulators were about to go after the bitcoin exchanges next and ban them totally within the next few days.

"I would assume that if China shuts down trading on continuous order books of the large exchanges, the price would drop below $4,000, or the price of the USA dollar price of bitcoin would catch up to where it's trading equivalently in China, " he said. "Old users will definitely still trade, but the entry threshold for new users is now very high".

Over the past year Bitcoin has soared in value, largely due to its popularity in China, one of the world hubs of Bitcoin mining and trading.

Bitcoin has jumped about 600 per cent in USA dollar terms over the past year, part of a broad surge in virtual currencies that has fuelled concerns of a bubble.

"There has been a general tightening of the screw on regulating financial and monetary conditions", said Mark McFarland, chief economist at Union Bancaire Privee SA HK in Hong Kong.

The daily trading volume of the Chinese bitcoin exchange market has almost doubled that of the USA bitcoin exchange market, surging above 45,000 bitcoins.

OKCoin, BTC China, and Huobi, the largest Bitcoin exchanges in China, told Bloomberg on Monday that they haven't been informed by authorities about any ban on trading. According to bitcoin market data provider Coin Dance, demand toward bitcoin in over-the-counter and peer-to-peer bitcoin markets such as LocalBitcoins has actually increased over the past two weeks.

Coinmama lets you buy bitcoins with your credit card or cash.

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