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Bitcoin Price Slightly Recovers from Losses That Followed Chinese Exchanges Withdrawal Block

February 10, 2017 at 20:45 by Yahia Barakah

Bitcoin edged marginally higher on Friday to recover some of the losses the virtual currency had yesterday, after the two biggest bitcoin exchanges in China said that withdrawals are blocked. The announcement followed a meeting on Wednesday between the exchanges and the People’s Bank of China.

The Chinese central bank has been targeting Bitcoin since the beginning of 2017, and its latest move came after the central bank met with several local bitcoin exchanges. The meeting was to discuss money laundering and other concerns the Chinese government has towards bitcoin, according to one report.

On Thursday, OKCoin and Huobi, two of the largest bitcoin exchanges in China and the world, announced that all Bitcoin withdrawals are frozen for a month under the request of the central bank. Customers can still withdraw any funds in yuan. Bitcoin prices crashed following the announcement, as the majority of Bitcoin transactions take place on Chinese exchanges.

The new changes to the policy of these exchanges mean that traders will only be able to deposit coins and sell them, which is expected to force the price of the virtual currency to further decline.

BTC/USD traded at 990.9 as of 20:25 GMT, from 950.0 at 08:35 GMT, the pair’s lowest level for the day. BTC/USD opened trading on Friday at 987.0.

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

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