Bitcoin falls after Chinese market suspends OTC sales

By Ed Adamczyk Contact the Author   |  Sept. 13, 2017 at 10:26 AM
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Sept. 13 (UPI) -- The value of bitcoin fell below $4,000 Wednesday as China's Bitkan exchange announced a suspension of over-the-counter sales.

The decline came as Asian media reports, citing unidentified sources, suggested that Beijing will soon ban the trading of virtual currencies, the South China Morning Post reported Wednesday.

Bitcoin is unregulated by any central bank and is not tethered to regulations from any central bank.

Bitcoin's value fell 5 percent to $3,962 on the Bitcoin Exchange Platform, known as Bitstamp, on Wednesday. Over-the-counter trading in the currency is popular among investors, particularly in Asia, because it allows them to trade outside traditional exchanges and features competitive pricing.

While the digital currency is embraced by some Wall Street traders, JP Morgan Chase CEO Jamie Dimon called it "a fraud" at a banking conference Tuesday in New York City -- comparing it to the 17th century market for tulips, a classic example of a financial bubble that acquires investors until it bursts.

"It's not a real thing, it will be closed," Dimon said of the enthusiasm for bitcoin. "It's worse than tulip bulbs. It won't end well. Someone is going to get killed.

"Currencies have legal support. It will blow up."

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