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Bitcoin Price Surges Even as China’s Exchanges Stop Offering Margin Trading

January 20, 2017 at 16:31 by Yahia Barakah

The price of Bitcoin surged on Friday to more than $900, but ultimately failed to maintain its gains as it edged lower to hover just below this level. Volatility remained modest in the market, as a number of attempts for higher prices did not manage to find enough momentum.

However, even at its current level, volatility remained considerably lower than its levels in the beginning of 2017, when the currency quickly broke the $1,000 mark before sharply heading down again. Today’s trading had no strong declines.

Bitcoin’s upward movement today happened a day after major Bitcoin exchanges in China stopped offering margin trading services. Huobi and OKCoin, two of China’s and the world’s largest Bitcoin exchanges by volume, announced on Thursday the changes that were quietly rolled out about a week earlier.

Huobi said that the People’s Bank of China requested the company to stop its services. This followed a recent investigation by the Chinese central bank, which looked for unlawful conducts in Bitcoin exchanges.

The bank said that irregularities were found in the operations of BTCC, Huobi, and OKCoin, which were used to create abnormal volatility in Bitcoin prices. Further findings were linked to violations of laws against money laundering. It still remains to be seen whether the changes to the services of Chinese Bitcoin exchanges will be permanent.

BTC/USD was at 897.44 as of 15:10 GMT on Friday, from 902.12 at 00:20 GMT, the pair’s highest level today. BTC/USD started trading today at 901.68.

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

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