Tuesday, December 10, 2013

Bitcoin Crashes 20% on China Clampdown Fears

Virtual currency bitcoin lost around $200 in value on Thursday after the People's Bank of China outlawed the country's banks from using it, leading some to cash in on their investments.
At around 8 a.m. London time, the price of a bitcoin sharply dipped by 20 percent back below the $1,000 level it reached around one week ago. At midday London time, the currency was trading at $980 on major exchange Mt Gox and $932 on CoinDesk's index, which measures a basket of prices around the world.

The fall in the price coincided with a statement released on the website of the China's central bank which warned of the risks that the cryptocurrency posed. It warned that Chinese financial institutions should not trade the digital currency saying that while it does not yet pose a threat to China's financial system, it carries risks.

- Source, CNBC: