BREAKING: Bitcoin Crashes 32% In China, Local Exchanges to Shut Down By End Of September

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  • The cryptocurrency traded at $3,436.74 at 3:25 p.m. in New York , far below an all-time high of $5,013.91 set earlier this month.

  • BTC China said in a tweet Thursday that it will close down its operations by Sept. 30 as Chinese authorities crack down on cryptocurrencies

Bitcoin prices plunged further on Thursday, after one of the largest Chinese exchanges for the cryptocurrency said it would stop all trading at the end of the month amid a country-wide crackdown.

Bitcoin has fallen more than 30pc since its peak less than two weeks ago, with drops recorded each day since Friday. 

The virtual currency is now trading at around $3,350. It swelled to cross the $5,000-threshold on September 4, having risen from just under $1,000 at the start of 2017.

It is thought the $5,000 milestone may have been seen as an opportunity by bitcoin owners to sell their investments, starting the sell-off and price plunge. 

It was then compounded by Chinese regulators deciding to ban initial coin offerings, which allow companies to raise funds without many of the regulations that are tied to traditional fundraising efforts. 

This latest fall, on Thursday, came after Chinese bitcoin exchange BTCChina announced it would be halting all trading from September 30, with a report published hours later by news site Yicai that China was planning to shut all bitcoin exchanges by the end of the month.

The report cited financial sources in Shanghai. China is a major market for bitcoin, with around two-thirds of bitcoin issued each day are mined in the country. 

BREAKING: Bitcoin Crashes 32% In China, Local Exchanges to Shut Down By End Of September

Chinese regulators, however, are not the only body to sound a warning over bitcoin, with the Financial Conduct Authority earlier this week telling investors they should only partake in virtual currency fundraisings if they are willing to lose all their money.

The City watchdog called the initial coin offerings “very high risk”.

Bitcoin suffered a further blow after JP Morgan boss Jamie Dimon called the currency a “fraud”.

“If we had a trader who traded bitcoin I’d fire him in a second for two reasons,” he said. “One, it’s against our rules. Two, it’s stupid.” 

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