Another stumble in the Chinese stock market has coincided with a slight rise in the price of Bitcoin suggesting a correlation which is likely to continue until January.
With China’s crackdown on stock purchases by insurance firms and the current Chinese stock market outlook, there could be further switch to Bitcoin as a store of value or medium of exchange.
China’s insurance regulator banned an insurer from further investing in stocks on Friday for conducting short-term trading despite recent stock investment by a few major insurers have helped boost trading activity in the Chinese markets. The insurers were among the big decliners in the A-shares market on Monday. Reports also suggest that comments by U.S. President-elect Donald Trump on Sunday that there may be a change in the U.S.’s acceptance of the “one China” principle, a cornerstone policy that has helped maintain peace between China and Taiwan, also contributed to what hurt investors.
While the stock dropped to a six-month low, Bitcoin reaches multi-year high to hit $788 on Tuesday December 13 according to CoinMarketCap – almost a 2.5% rise from its $769 tag on Monday though the price has now been corrected to $780 at the time of this publication.
An article in the Wall Street Journal states that the downward trend in shares will likely continue until January based on a pickup in IPOs in recent months which is making investors expect an imminent wave of selling by shareholders whose stockholdings have been locked up since the companies in which they had invested were listed. This is because China requires existing shareholders of a listed company to hold their stocks for at least a year after the firm floats.
According to MarketWatch, shares in the Shanghai Composite Index ended down 2.5% to be the biggest one-day drop in percentage terms since June 13 with nearly 1,000 stocks in the red on Monday December 12 following the crackdown. On the other hand, the Shenzhen Composite Index was 4.9% lower.
Calculations by Sinolink Securities shows there is more than 370 billion yuan of such locked-up shares that will become tradable this month with a further 440 billion yuan of such shares coming up in January.
Amsterdam's Airport Lets Travelers Swap Leftover Euros for Cryptos
Schiphol – the international airport serving the Netherlands' capital city, Amsterdam – is launching an ATM that will allow travelers to exchange their euros for bitcoin or ethereum.
The airport ex
National Chinese Science Academy Launches Blockchain Lab
China's federal science institution, the Chinese Academy of Sciences, is taking part in a new research effort around blockchain.
The highest academy for science in China said it had established a n
St Louis Fed Now Tracks Crypto Prices on Its Research Database
The St. Louis division of the U.S. Federal Reserve Bank is now tracking the prices of four cryptocurrencies in its research database.
According to an announcement on Tuesday, Federal Reserve Econom
Chinese Gov’t Rates EOS as the Best Public Blockchain, Bitcoin Drop to 17th
EOS tops the public blockchain among 30 projects in the cryptocurrency space, while bitcoin, the original and largest cryptocurrency, is ranked 17th, according to the Chinese government’s second mon
Bloomberg Terminal Adds Huobi's Cryptocurrency Market Index
Cryptocurrency exchange Huobi announced that financial data firm Bloomberg has added the HB10 crypto market index on its terminal for subscribers.
In an announcement on Thursday, Huobi said users o
Skycoin’s Chinese Marketing Team Took CEO Hostage and Stole 18 Bitcoins
The blockchain project Skycoin, which touts itself as the “the new internet for the new world”, saw a major sell-off over the past two weeks after an insider trading and a series of scandals were
Winklevoss Brothers Score Another Crypto Investment Patent
Crypto exchange Gemini founders Tyler and Cameron Winklevoss have long sought the creation of a bitcoin exchange-traded fund.
And while that process remains in flux, a company tied to the brothers
Why bitcoin made a comeback after the South Korean exchange hack
Bitcoin made a comeback despite crashing after a recent hack on a South Korean exchange, and two cryptocurrency traders explained why it rebounded. Charlie Lee, the founder of Litecoin, a global