Bitcoin price dropped further amid a frenzied market sell-off on Friday in a week where two major Chinese exchanges announced the halt of trading operations following regulatory scrutiny.
Bitcoin prices fell to a new 40-day global average low of $3,023 on Friday as the global market reacts to significant goings-on in China. Prices fell nearly 20% on the day, losing nearly $700 since trading on Thursday.
Data from CoinmarketCap shows a significant investor sell-off in global markets.
While the country’s ban on ICOs and – presumably – bitcoin and cryptocurrency trading platforms steps up a gear, some observers see the bright side in pointing to the waning influence of China on bitcoin.
Regional news cnLedger put the spotlight on price movements following regulatory burden, highlighting the lessening impact of Chinese regulators on bitcoin’s value.
Will that be the end of it? Chinese regulations and bitcoin price. pic.twitter.com/aH2kKOptVt
— cnLedger (@cnLedger) September 15, 2017
Once the world’s largest bitcoin trading market with over 90% of activity, China is now behind USD-based markets and Japanese markets, according to market data.
The likes of Charlie Lee, the creator of Litecoin – a cryptocurrency commonly seen as the silver to bitcoin’s gold – further added that China’s squeeze on local markets was a “good thing”.
Writing on social media yesterday, Lee stated:
This is a good thing. China can no longer play with the markets by banning Bitcoin. Crypto-currency cannot be killed by any country.
Industry entrepreneur Kim Dotcom added:
No Government can stop the rise of crypto now. Bankers begin to panic. The old ripoff financial systems are crumbling. Beautiful! #bitcoin
— Kim Dotcom (@KimDotcom) September 14, 2017
There could yet be further tumultuous price movements on Friday as OKCoin and Huobi – two of China’s ‘big three’ exchanges including BTCC, meet with regulators. As things stand, BTCC announced the shuttering of trading operations from September 30. Earlier today, crypto trading platform ViaBTC followed suit with a similar announcement to close trading operations by the end of the month.