The sudden announcement by a major Chinese exchange BTCC that it would stop trading on September 30 and the Chinese government being reported as planning to close all exchanges appears to have created a panic sell off that may have now run its course. Litecoin was also severely impacted by events losing even more than bitcoin as it has many Chinese investors.
Within a 24 hour period there was more than $3.5 billion worth of bitcoin traded. It remains to be seen whether the recovery will continue. Many will no doubt wait and see how things turn out before entering the market. However, it seems that there is still great interest in what JP Morgan CEO Jamie Dimon called a fraud. According to a recent article JP Morgan among ohers bought bitcoin as its value plunged:
According to public records of Nordnet trading logs, the two associated firms JP Morgan Securities Ltd., and Morgan Stanley bought roughly 3M euro worth of XBT note shares. Interestingly after the recent regulatory crackdown in China, and the statements from JP Morgan’s senior executive Jamie Dimon talking trash about bitcoin, his firm bought the dip on September 15. In fact, out of all the companies on the list, like Goldman Sachs and Barclays, the JP Morgan team of buyers purchased the most XBT notes. XBT is the commonly used code for bitcoin. It is interesting that JP Morgan and other establishment financial institutions are hoping to make money from the bitcoin “fraud”. I am not sure how reliable the article is but anything seems possible these days!
No doubt Chinese holders of bitcoin are beginning to realize that the currency is not banned. Over the counter individual to individual trading will still be allowed. If it actually happens, the suspension of trading may be a temporary measure until the government determines what regulations to put in place. Regulation will not change the fact that the bitcoin trading system itself is unaffected and is still decentralized and not dependent upon third parties.
Other cryptocurrencies were mixed as this article notes:
Other gainers included ethereum’s ether, which also started to climb off the deck to $240; Ripple XRP, up just under two percent to $0.178837; Dash, which was boosted more than 10 percent to $279; and Monero, up to the $95 level, a two percent gainer. Still struggling: Bitcoin Cash (BCC) down nearly two percent to $405; and Litecoin, also down nearly two percent to $46 per single coin. For the near future it appears that the market for cryptocurrencies will be volatile.
This opinion article was written by an independent writer. The opinions and views expressed herein are those of the author and are not necessarily intended to reflect those of DigitalJournal.com