The price of Bitcoin has traded below the $3,000 mark today from highs of $4,937 on September 2 this year. The price of Bitcoin and other cryptocurrencies have been devaluing since the Chinese Government announced a crackdown on cryptocurrency exchange site in the country. The Chinese government also announced that it is illegal to conduct Initial Coin Offering (ICO).

ICO is offering digital coins for sale for new cryptocurrency ventures. The lack of Chinese government support in Asia's biggest economy has dampened optimism in the cryptocurrency market both in China and Globally.

People may be selling their cryptocurrencies such as Bitcoin while potential users of this coins from other countries are waiting to see whether their governments will impose measures similar to those of China.

Bitcoin's price movement

The price of Bitcoin has been rising steadily since the past one year. On September 15, 2016, its price was $610. Its price rose to $2,350 three months ago. Its price then rose to an all time high of $4,937 on September 2 this year but has been declining steadily ever since the Chinese government introduced measures that will eradicate the crypto currency market in its economy. Its price has thus devalued by 32 percent within two weeks. 27 billion dollars of Bitcoin's market capitalization have also been wiped out within two weeks.

The prices of other crypto currencies

On September 2, the total market capitalization of the cryptocurrency market (excluding Bitcoin's) was $97 billion, the current market capitalization of this market (excluding Bitcoin's) is $50 billion which is a loss of 47 percent within two weeks. Ethereum, on the other hand, is priced at $227 from highs of $383 two weeks ago.

Bitcoin Cash, the third largest cryptocurrency by market capitalization is now priced $400 from highs of $593 two weeks ago. Another cryptocurrency that has suffered significant losses is Litecoin whose price is $43. Litecoin's price two weeks ago before the Chinese government's measures was $89.

The future of cryptocurrencies

The future survival of crypto currencies will depend on government support. Investors and users of crypto currencies in China may be driving down the prices of these digital coins as they exit the market. Users in other countries are less optimistic about the future potential of this market as other governments may deem it to be illegal. The future of cryptocurrencies will also depend on the level of fraud in the market as governments move to protect their citizens from unscrupulous individuals in this market.

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