“Bitcoins , the next crash down”

BTC China announced the plans yesterday as regulators crack down on the nascent cryptocurrency sector in a bid to stamp out potential financial risks.

“We will stop all trades on the digital trading platform starting Sept 30,” said BTCChina, one China’s largest bitcoin trading platforms. 

Bitcoin has fallen $1,000 since the start of the month amid speculation the Chinese government is launching a crackdown on exchanges.

The latest drop in price comes just days after JPMorgan Chase CEO Jamie Dinmon slammed bitcoin as a ‘fraud’ that will ultimately blow up.

“It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed,” he said, referring to the tulip mania crash in the 1600s. 

“Currencies have legal support. It will blow up.”

The latest bitcoin price chart show that the cryptocurrency has fell nearly as low as $3,000 earlier today.

There are mounting fears of a bubble after bitcoin soared from less $1,000 at the start of the year to an all-time of $5,000 two weeks ago. 

Bitcoin surged back above $US4,000 overnight and kept climbing, a short time ago trading at more than $US4,200.

There were smaller gains for Bitcoin Cash, while Ethereum, the second-largest cryptocurrency by market cap, also saw renewed demand. It’s back above $US300 for the first time in two weeks.

Bitcoin has been rising steadily in recent days – it kicked off the week with a push towards $US4,000 in a more risk-off environment, as the market responded to more tensions between the US and North Korea.

Amid the latest Bitcoin rally, Sources  reported overnight that Bitcoin developers may be preparing for a second split in the currency, following the split at the start of August that created Bitcoin Cash.

The next “hard fork” will lead to the establishment of Bitcoin Gold, as developers work on improving protocols to increase transactions speeds.

Morgan Stanley’s Australian CEO James Gorman also weighed into the Bitcoin debate overnight, saying that the cryptocurrency is “more than just a fad“.

That’s certainly a friendlier tone than the tone adopted by JP Morgan CEO Jamie Dimon, who’s launched repeated attacks against Bitcoin calling it a “fraud“.

by Israt Yasmin, The Blogging Connection