Bitcoin Breaks Below $4000 During 12% Sell-Off

Dumping of bitcoin is precautionary, ie, those sitting on good profits fear a correction so take what they have with a view to getting back in at a lower price. The Chinese action is rather brutal but this is how they are. It is aimed at Chinese speculators using ICOs to fleece the public. Bitcoin trading is not speculation because a max of 21m coins can be mined so the pressure is primarily to price increases over the long term, especially in competition with other cryptos that have no upper limit to volume. There is little long term danger to the public in holding bitcoins so it is better for the Chinese authorities to regulate bitcoin trade as others have done.