Bitcoin Drops to $3,300, Fire Sales as Two More Chinese Exchanges Face Uncertainty

After a brief rally late on Thursday, Bitcoin stalled and the market continued to slide on Asian selling as exchange BCC closed and OKCoin and Huobi face regulatory hearing, according to Charlie Lee.

Just a day after the closing of BCC China, the other two major exchanges, OKCoin and Huobi are heading for regulatory talks, at least according to a tweet from Litecoin creator Charlie Lee. But Huobi and OKCoin claim they are operating as usual and they have not been contacted by regulators. This did not stop rumors that other exchanges may close as Twitter users expect more regulation.

 

Bitcoin showed a very brief hourly recovery, but Asian trading deepened the losses across the board as cryptocurrencies slid from their recent peaks.

Bitcoin fell to $3,363.03, down by more than 12% in the past 24 hours. Litecoin, supported by Chinese buying, slashed more than 23% in the past 24 hours to $46.44. The fall deepens across the board and the market capitalization of cryptocurrencies has slid down to $116 billion from a peak above $150 billion.

But true believers seem to be unfazed, at least when it came to BitcoinTalk:

The general opinion is that cryptocurrencies are here to stay, and the recent drop is a buying opportunity. But since one Chinese exchange already closed, the market may shrink due to a temporary withdrawal of funds.

"The market needed to cool off anyway, it might as well happen now," added poster HubBear.

Some users see the possibility that Bitcoin slides even below $3,000 and as far down as $2,800.

The prices could not even be affected by the news of a new missile provocation by North Korea. The regime fired another missile over Japan, but even that did not rekindle interest in cryptocurrencies as a safe haven in a crisis.