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Bitcoin Price Rises as Chinese Exchanges Allow Withdrawals

June 2, 2017 at 14:26 by Yahia Barakah

The price of Bitcoin rose on Friday as the virtual currency continued to gain more support from Asian demand. One of the largest Bitcoin exchanges in China allowed its clients to withdraw their funds in a move that ended a block that was imposed last February.

In an attempt to counteract the flight of capital from the country, the People’s Bank of China took a number of measures that included banning withdrawals from some of the biggest Bitcoin exchanges in the country. However, on May 31, OKCoin resumed withdrawals to end the block that had caused the price of Bitcoin to lose about 10% following a rapid surge in the beginning of the current year.

OKCoin accounts for about 31% of all Bitcoin trades in China. The exchange was among 9 Bitcoin exchanges that were present in a meeting with the People’s Bank of China where the nation’s regulators ordered the ban. Huobi, BTC China, and other exchanges are yet to make any announcement about the state of their withdrawals.

Chinese Regulators’ stance on Bitcoin seem to have shifted to an embracing one in recent months, as the People’s Bank of China began efforts to regulate the currency instead of limiting it. China’s State Council stated in its national plan for the next five years that it’s important to explore the potential of the Blockchain technology that Bitcoin is based on.

On a weekly basis, the price of Bitcoin declined this week, as the market responded to recent massive gains that pushed the digital currency past $2,700 with a corrective drop to below $2,500. The correction came as concerns of a valuation bubble spread between Bitcoin investors as the virtual currency swiftly moved from one record high to another.

Anticipation for a decision from the US Securities and Exchange Commission regarding the Winklevoss exchange traded fund continued to drive the Bitcoin price higher. If approved, the fund would offer the means for US investors and financial institutions to directly place their funds into Bitcoin.

BTC/USD traded at 2,406.44 on the Bitstamp exchange as of 14:19 GMT on Friday from 2,385 at 01:05 GMT. BTC/USD began the day at 2,405.01.

If you have any questions and comments on bitcoin today, use the form below to reply.

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