Bitcoin plunges nearly 25% in 6 days: Here’s 3 reasons why

Conversely, the threat of a Brexit had an adverse effect on the Chinese yuan, which hit a five-year low last week, was also a reason cited by experts, given China accounts for the large amount of bitcoin trading.

“Brexit could be a major factor, but, since the lion’s share of bitcoin trading activity occurs in and around China, it’s unlikely that this is the primary cause. Although if you look at the bitcoin price among exchanges based in China they are $10-20 lower than the global exchanges, this might reflect the yuan’s 5-year low and the expected yuan volatility as a result of Brexit,” Aurélien Menant, CEO and co-founder, Gatecoin, a digital currency exchange, wrote in an email to CNBC.

Menant added that he expects the volatility “to settle down within the next couple of weeks”.

Read more ... source: TheBitcoinNews