Uncategorized Bitcoin Price Below $4,000 After Reported China Ban on...

Bitcoin Price Below $4,000 After Reported China Ban on Cryptocurrency


- Advertisment -

Bitcoin prices have tumbled over $1,000 over the past month as China clamps down on cryptocurrency.

Chinese authorities have reportedly decided to ban the trading of Bitcoin and other cryptocurrencies on domestic exchanges, the Wall Street Journal reports. That has pushed Bitcoin as low as $3,978 over the weekend. It has since ticked upward to about $4,177 as of early Monday.

That’s a 20% drop since the start of September, when China’s central bank said it would ban initial coin offerings—tipping the cryptocurrency from its all-time high of above $5,000.

Prior to China’s most recent clampdown on Bitcoin and other cryptocurrencies, Bitcoin had been soaring as investors grew more optimistic about the future cost and speed of transactions.

But news of China’s potential exchange ban has likely spooked investors. The country accounts for a hefty portion of the Bitcoin market, with about 18% of trades being conducted in Chinese yuan, according to CryptoCompare.

Investors in China have been using Bitcoin as a way to protect themselves should the yuan fall in value. Trading their yuan in for Bitcoin can allow Chinese investors to move funds outside of the country. Traditionally, China’s government has set a $50,000 annual limit on how much its citizens can move outside of the country. Buying Bitcoin was a way to bypass those rules.

Still, the ban is not exactly a ban on trading Bitcoin entirely. It still will allow for over-the-counter transactions. While existing users will likely still trade, according to Zhou Shuoji, a founding partner at FBG Capital interviewed by Bloomberg, it will make it more difficult for new users to start trading Bitcoin—thereby limiting Bitcoin’s potential growth.

Notably, the ban has yet to be officially announced in China, according to the Wall Street Journal.

The price of Ethereum also ticked upward slightly to about $290 early Monday, up from $283 over the weekend as investors continued to digest reports of the ban in China.

Bitcoin Price Below $4,000 After Reported China Ban on Cryptocurrency

This is part of Fortune’s new initiative, The Ledger, a trusted news source at the intersection of tech and finance. For more on The Ledger, click here.

Source link


Please enter your comment!
Please enter your name here

Latest news

Snapped Up! WaykiChain ROG Genesis Yield Farming Round 1 Subscription Completed

Round 1 Subscription of WaykiChain’s ROG Genesis Yield Farming scheduled to start at 20:00 HKT on September...

KryptoCibule: The Cryptostealing Malware

ESET antivirus researchers have announced the discovery of an unknown trojan malware family that spreads through malicious...

Crypterium Signs New Partnership with Apple Pay, Unveils its Virtual Card

In late 2017 when Bitcoin and other digital assets became quite popular, the consensus amongst enthusiasts was...

Top 5 Crypto Invoice Services for Making Business Administration Simpler

In the current economic landscape, the cryptocurrency’s worldwide adoption is picking up at an ever-increasing pace.
- Advertisement -

Data-Intensive Sector Has A Lot More To Explore With Blockchain Technology

Blockchain technology in Data-Intensive sectors is gaining huge recognition in the market. It is used in building...

4 Tips on How To Succeed on Bitcoin Trading

Bitcoin is a type of cryptocurrency which has grabbed the attention of countless people from different countries....

Must read

KryptoCibule: The Cryptostealing Malware

ESET antivirus researchers have announced the discovery...
- Advertisement -

Read Next
Recommended to you