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September 15, 2017

Major bitcoin exchange in China to cease trading

The shutting down of BTCC is a blow to Bitcoin, but it has endured the closure of an important exchange in the past.

By Tom Ball

The BTCC bitcoin exchange in China has announced that it will cease its activity from the 30th September following increasing government pressure.

Chinese government intervention came with force earlier this month when a ban was placed on initial coin offerings, representing the concern associated with its use.

Investment risk is the primary reason driving the government’s move to crack down on crypocurrencies that have been rapidly gaining popularity.

Having broken a string of new value records this year, bitcoin continues to be volatile, having fallen sharply in a sell off upon breaking the $5,000 price mark for a unit of the currency.

BTCC’s announcement also drove bitcoin’s price down further from its recently gained new height. The price fell by in excess of 15 percent before it regained some stability.

In 2013, the bitcoin exchange Mt. Gox closed down, also having adverse effects on the price of the cryptocurrency, causing some to doubt that bitcoin would ever again surpass the $1,000 mark.

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The bitcoin boom has meant great success for the likes of the cryptocurrency exchange, Coinbase, having recently achieved unicorn status with a valuation of over $1.5 billion.

Coinbase experienced the full extent of the bitcoin price boom this year, having even been knocked offline by a particularly sharp price spike. At this point the currency had climbed to a new record price of over $2,800 per unit of bitcoin.

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Concern was also raised around bitcoin when the blockchain it runs on went through a hard fork, causing bitcoin to split into two. While this had the immediate benefit for bitcoin owners, who ended up doubling their money, the event reduced confidence in the foundation of the cryptocurrency.

Bitcoin has not been alone in making 2017 a year of cryptocurrency growth and excitement, with the likes of the Ether, Dash and LiteCoin also gaining great attention.

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