Chinese Crypto Crackdown

by | Sep 11, 2017

The price of Bitcoin has fallen, thanks once again to actions taken by the Chinese Government under Xi Jinping. China intends to shut down domestic Bitcoin exchanges, adding insult to injury for cryptocurrency traders. Traders of Bitcoin had already seen the price fall recently, due to the country banning ICOs (initial coin offerings), a type of fundraising via virtual currencies. This two-pronged attack by China on decentralised forms of currency has hit market sentiment, though across the rest of the world it looks as if major institutions are becoming ever more partial to the idea that they can use Bitcoin to their advantage. 

The move by China comes after months of scrutiny of the cryptocurrency market by Beijing, who are cracking down on an area of the economy that is much more difficult for the states communist government to control. Authorities don’t have plans to stop over-the-counter transactions, just those conducted on exchanges, according to sources. Despite this, trading volumes are likely to drop significantly. China accounts for around 25% of all Bitcoin trades. Tightening of financial regulations is likely to curtail a big cryptocurrency price rise for the time being.

The cost of a single Bitcoin is now at just over $4100, though it was sitting above $4600 before the weekend. The price of Ethereum is $292.54 at the time of writing. 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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