Investors are fleeing the bitcoin as it is known that China's central bank will investigate transactions on the virtual currency for possible crimes.
Bitcoin returns to show its usual volatility with a new lurch. A week after breaking historic records above $ 1,100, to the point of equating to an ounce of gold , it deflates below $ 800, in January which its the lowest levels in three weeks. But it has today rose to $2,054.78 ... Let's keep the tension low !
The falls in today's day accelerate and exceed double digits. The disbandment has its origin, again, in China. China's central bank has tightened its grip on one of the most volatile assets at a time when investment in the virtual currency caused a furor among its citizens.
In the middle of the rally, more than 90% of transactions recorded in bitcoin were registered in China. The bearish dribbling of the yuan has triggered the interest of Chinese investors in the crypto-currency. In 2016, the yuan deflated by about 7%, its biggest annual decline since 1994, while bitcoin far outpaced the appreciation of all physical currencies by up 125%.
Last week the virtual currency moved away from its highs with the warning issued by China's central bank. In its communiqué it warned of the abnormal fluctuations that it has registered in the last days (it has shot up 40% in two weeks), and urged its citizens to realize rational investments in this context of maximum volatility.
Analysts then stressed that the central bank's warning could be a first step in introducing some kind of restrictions on investment in the virtual currency, so fashionable in China as an alternative to the yuan.
A week later the Chinese central bank has tightened the siege on bitcoin. It avoids the introduction of restrictions on investment. But it has surprised to announce an investigation of the transactions carried out in the main platforms where the virtual currency is traded , such as BTCC, Huobi and OKCoin, based in Beijing and Shanghai.
With this tracing of the operations it tries to clarify if there have been cases of market manipulation, illicit financing or laundering of money.
The Chinese central bank's measures could slow down the use of bitcoin as a way to get capital out of the country and open the door to more restrictive measures.
Coinciding with the start of the new year and in an attempt precisely to curb the country's capital outflows, China has already stepped up controls on purchases of foreign currencies by individuals .
Although the annual limit that each person can change is maintained at the equivalent of 50,000 dollars, the Administration of Foreign Currency warned that its inspections will now be more stringent.
Do you have any phobia for bitcoin? Share your experience with us
A Big Thanks to You in Anticipation...