Bitcoin Price Falls to $3000 but China Influence Wanes — Newsflash

The price of bitcoin plummeted another 9 percent Thursday, while rival currency ether dropped 12 percent.

Ethereum is plunging on Thursday afternoon, trading down over 17% to $228 per token, following reports that Chinese regulators are taking steps to shut down the country's bitcoin exchanges and possibly ban all trading of digital coins.

The value of Bitcoin has also started to crash. These two events have caused Bitcoin advocates to worry about the future of the cryptocurrency around the world. Ever since Bitcoin hit the $5,000 mark, it appears bad news is crawling out of the woodworks as we speak.

"I'm not saying 'go short bitcoin and sell $100,000 of bitcoin before it goes down", he said.

Chinese authorities expressed concern over the investment risks involved in crypto-currencies and ordered a ban on initial coin offerings, or ICOs, earlier this month.

Not everyone seems to be in favor of shutting down Bitcoin trade in China. Other indications from a technical perspective like the Relative Strength Index or RSI has also indicated that prices of Bitcoin could be more oversold than anything at the moment. The currency is now down more than $550 from yesterday, and it's still trending downward.

Ethereum is one of the biggest losers in this correction, shedding roughly 50 percent of its value since August.

The sudden drop in confidence in cryptocurrencies is further exacerbated by recent comments from a financial industry elite.

Just a day after JPMorgan Chase CEO Jamie Dimon unleashed a fury of attacks on Bitcoin (and cryptocurrencies in general), another salvo is incoming.

The Bitcoin price has taken a serious beating ever since the news broke about an hour.

"Blockchain technology and cryptocurrencies have the potential to sweep away all of today's incumbent financial institutions". After having grown by 800% in the first half of 2017, the cryptocurrency market lost billions of dollars.

The new rules on message groups have delivered a rare setback for WeChat, which permeates the daily life of 963 million users and underpins Shenzhen-based Tencent Holdings Ltd.'s $400 billion market valuation.

According to the chief market analyst of Think Markets UK, Naeem Aslam, the Asian market is of primary importance to the demand and supply of Bitcoin.

  • Zachary Reyes