Bitcoin price drops $200 after new ruling from Chinese regulators

The price of bitcoin fell sharply after Chinese
regulators announced a ban on organizations
from raising funds using initial coin offerings
ICOs allow start-ups to raise investment by
selling new cryptocurrencies, which are similar
to bitcoin, in return for cash.
However, the People’s Bank of China says this
practice, which has become popular around
the world as well as in China, constitutes
illegal fundraising.
Despite bitcoin’s price falling, some expect
this move to be shortlived.
“This type of news is ‘universally’ negative
sentiment, within the crypto space, so we
are not surprised to see a dip on all assets
today,” Fran Strajnar, co-founder and CEO
of data and research company Brave New Coin,
told CNBC via email.
“We do not see this to be a lasting issue.”

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