/// That Giant Bitcoin Crash in the Wake of China Restrictions? It Never Happened.

December 30, 2013  |  All Things Digital


When news surfaced two weeks ago of a fresh round of restrictions China was placing on businesses transacting in the bitcoin ecosystem, the value of bitcoin plummeted. The CoinDesk Bitcoin Price Index, for example, showed that bitcoin traded as low as $422 around Dec. 18, when the large Chinese exchange BTC China acknowledged that it wasn’t accepting new deposits in the local currency until it could find a new payment processor that would do business with it. But a funny thing has happened since then. Bitcoin hasn’t experienced an all-out crash. Instead, its value has recovered. A lot. As of this writing, CoinDesk’s index, which takes the average of bitcoin trading values from three global exchanges (not including BTC China), pegs the value of bitcoin at about $755. That’s a 79-percent increase in a little less than two weeks. The digital currency is trading a bit lower on BTC China, which still isn’t accepting new deposits, at about $723, but its value has recovered a bunch in the last two weeks. So is bitcoin suddenly so resilient that one government’s restrictions can’t topple the whole ecosystem? Or are there artificial safeguards propping the value up

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That Giant Bitcoin Crash in the Wake of China Restrictions? It Never Happened.


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