🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Bitcoin is shrugging off some big news of out of China

Published 01/23/2017, 07:32 AM
Updated 01/23/2017, 09:08 AM
© Reuters/Bobby Yip, Photographers in front of a mock bitcoin ATM in 2014 during the opening of Hong Kong's first bitcoin retail store.

Bitcoin is little changed at $924 a coin as of 7:26 a.m. ET.

Monday's flat session comes despite some big news out of China. According to Reuters, the country's three largest bitcoin exchanges announced plans to begin charging a flat fee of 0.2% for each transaction. Releases from BTCC, Huobi, and OkCoin reportedly said the fees were being implemented to "further curb market manipulation and extreme volatility."

Bitcoin has had a wild start to 2017. The cryptocurrency rallied by more than 20% in the opening days of 2017 amid huge interest from China, which accounts for nearly 100% of trading. In fact, data from Cryptocompare found, "In the first 24 hours of the new year, over 5 million bitcoins were bought in Chinese yuan, equating to $3.8 billion. In contrast, just 53,000 bitcoins were bought in US dollars."

The early gains vanished in a matter of days, however, as bitcoin tumbled 35% on concerns that China was going to crack down on trading, with Beijing having announced it had begun investigating bitcoin exchanges in Beijing and Shanghai on suspicion of market manipulation, money laundering, unauthorized financing, and other issues.

But bitcoin has managed to work its way off support in the $750 area, and it is trying to break out of resistance in the $880/$920 area that has defined trade for the past week.

Monday's announcement could reduce some of the market volatility, as bitcoin traders in China won't be allowed to buy and sell without paying the new transaction fee.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.