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Bitcoin’s woes worsen as China ban confirmed.



Bitcoin crash. Photo: ForexNewsNow
BTC tumbles on news that China's second largest exchange is closing.

BTC tumbles on news that China’s second largest exchange is closing.

Yuan denominated Bitcoin crashed today in today on news that China’s second largest exchange, BTCChina , will halt trading as of September 30. As of 11.30am EST, the Yuan BTC cross was down a massive 35%.

BTC/USD didn’t far much better, at 6.30pm EST it’s down -14% and trading below the crucial $3500 dollar support/resistance level. ETH/USD is also suffering, down around -16%.

Beijing has taken a number of steps to limit crypo markets in China over fears of capital flight. China makes up around 40% of BTC volume, the removal of this demand will have significant implications. China is also home to some of the largest mining operators, and with the cost of creating one Bitcoin currently around $1000US, we could see these margins squeezed.
Proponents of the BTC would say this is a Buy The Dip opportunity. For the detractors, this is evidence that the bubble has burst (at least for the time being) and a more realistic valuation is at hand. 
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