The price of Bitcoin is crashing as we write. Now there have been big pullbacks along the almost linear chart of the price as it’s moved higher, but this one is a bit different. There is new risk from government intervention. As of now its worst week since January 2015.
What is going on? China aims to stop the exchange and trading of ALL Cryptocurrencies by the end of this month. That is a HUGE LOSS. Bitcoin dropped over 10 percent to $3,000 level making this week’s decline to over 30 percent.
China is good four nearly 1/4th of all bitcoin trades and is also home to many of the world’s biggest bitcoin miners.
Make no mistake, this is clearly a result of China’s crackdown, and follows JP Morgan CEO Jamie Dimon calling it a fraud. The ban includes restricting all initial coin offerings as well. Is it healthy? Well the price has soared more than 700 percent in a year, so pullbacks are needed in all bull markets, but some are very worried. All is not lost though as the ban will only apply to trading on exchanges. People can still use them. Authorities don’t have plans to stop over-the-counter transactions.