Bitcoin Drops Below $4,000 On Worries Over China

On Wednesday, Bitcoin dropped below $4,000 due to negative comments from business leaders about it and the threat of a crackdown by regulators that has unnerved investors.

The cryptocurrency fell to $3,907.25 during trading Wednesday, before gaining back to trade at $4050 in Asia, showed data released from CoinDesk the industry website. Bitcoin was up and down all day.

At the lowest point of the day Wednesday, bitcoin was more than $1,000 off its all-time $5,013.91 high that it hit September 2.

The total market capitalization for Bitcoin has dropped by close $15.5 billion from its value on September 2 when it was $82.28 billion with it now sitting on $66.74 billion.

Investors over the last few days have been quite nervous. The biggest reason for their current fears have been several media reports that suggested regulatory authorities in China are looking into shuttering some of the bitcoin exchanges there. Bitcoin exchanges are the platform, on which bitcoin is traded.

One other report released earlier in September by Caisin said that authorities in China was considering banning projects that were trying to raise funds through using cryptocurrencies. The so-called initial coin offerings or ICOs have exploded onto the scene the past few months.

It is not only the regulators in China that are taking closer looks at bitcoin. The central bank in India on Wednesday said it was looking at cryptocurrencies as a possible legal tender. The Reserve Bank of India’s executive director Sudarshan Sen said the bank was not comfortable with the non-fiat cryptocurrencies.

Business leaders are also starting to pour cold water onto the popular cryptocurrency. Jamie Dimon the CEO at JPMorgan Chase on Tuesday said that the cryptocurrency was a fraud.

He added that it was not a real thing and eventually it would be closed. The CEO of JPMorgan made those comments during a conference.

Bitcoin has grown in popularity the last 12 months. Online sportsbooks are using the currency in place of other hard currencies for bettors to make deposits, to wager with and to make withdrawals. Bettors like the currency since there is very little time needed to make a withdrawal and deposits are credited almost instantly.

Nevertheless, others such as regulators in China, central banks such as India’s and JPMorgan CEO Dimon are not as confident in the cryptocurrency as of yet.

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One Response

  1. Galyna says:

    Thanks for the article!
    I guess it’s just the matter of time for bitcoin to become a regular currency in every industry and country as well.

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