Here’s what we know. The price of everyone’s favorite digital asset had dramatically risen in value at the beginning of the year reaching roughly $1,145 USD per bitcoin. The day after this substantial gain, bitcoin took a significant dive shaving over $300 off the price. The sudden drop was unexpected to some as the cryptocurrency’s crossover to the 4-digit range didn’t last long. Speculators wondered where the bearish decline was stemming from blaming miners selling off at the end of the year, to those who held for over three years to gain back what they once lost.
However, the uncertainty once again turned to China as many started to speculate the price drop derived from that region. The bitcoin community and mainstream media heard reports of China’s central bank warning about bitcoin. According to the regional publication 8BTC.com, the People’s Bank of China (PBOC) explained Chinese exchanges should conduct a self examination of their operations.
“The recent Bitcoin Price is highly volatile,” explains the PBOC. “To prevent risks and uphold financial stability, PBOC Shanghai and Financial Office of Beijing have jointly met the major heads of OKcoin and Huobi to know the current status of Bitcoin trading. We have reminded them of possible risks and require it operate strictly in accordance with laws and regulations of China. We have urged the two exchanges to conduct self-examination based on related laws and correct, if any, possible irregularities.”