Bitcoin currency rises after China's exchange shutdown
BITCOIN'S price has jumped back towards $4,000, as the cryptocurrency staged a recovery after China closed down exchanges BTCC, OkCoin and Huobi in a move that prompted a steep crash in value.
The value of the digital currency is now hovering at around $3,680 after tumbling below $3,000 on Friday amid fears the bitcoin bubble was bursting.
Bitcoin's price had surged by around 700 per cent over the past 12 months to hit record highest of near $5,000.
But the bottom appeared to fall out after the Chinese government carried out a major crackdown.
BTCC has now announced it will end trading at the end of the month, with OkCoin and Huobi closing at the end of October.
A Chinese government notice said: "All trading exchanges must by midnight of Septermber 15 publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations.”
Platforms must also tell the government by September 20 how they will allow users to make withdrawals in a risk-free manner and handle funds to make sure investor interests are protected.
The price also came under pressure after JP Morgan boss Jamie Dimon called bitcoin a fraud, and promised to fire staff dealing the digital money for being "stupid" and "dangerous".