China News Prompts Bitcoin Flash Crash

China News Prompts Bitcoin Flash Crash

China continues to frustrate the crypto community. After banning ICO’s earlier in the week, there are reports out there that the country is considering banning all cryptocurrency exchanges from operating in China.

The effect on crypto prices is fairly predictable, they’re all down:

Bitcoin: down 7.7 percent
Ethereum: down 11 percent
Bitcoin Cash: down 11.2 percent

In a recent Tweet, the official newspaper of the Chinese Communist Party, People’s Daily, tweeted that “Chinese supervisory authority has decided to close local virtual currency exchanges.”

This isn’t the first time China is has banned exchanges. Back in 2013 the government asked BTCChina to stop accepting deposits in Chinese yuan, leading to bitcoin dropping 50% in value. The government later went back on their decision.