NEW YORK — The cryptocurrency market appears to be unconcerned about a Chinese crackdown on bitcoin, the largest digital coin by market cap.
On Thursday reports that Chinese regulators would require exchanges to shut down bitcoin trading triggered a sell-off of nearly $1,000, bringing the price of the coin below $3,000 for the first time in over a month. Within hours, however, bitcoin recouped most of those losses.
Since then, some of China's largest cryptocurrency exchanges, including OKCoin and Huobi, have announced they will voluntarily halt trading between bitcoin and yuan and reports of further government intervention have emerged.
Still, bitcoin has nudged up near .72% over the past week, as traders brush off recent headlines as peripheral to the future of the digital coin.
Josh Olszwicz, a bitcoin trader, told Business Insider the markets are ignoring news out of China because it has zero impact on the coin's actual blockchain technology.
"If it doesn't affect the protocol, then it's not a real problem," he told Business Insider."The bitcoin cash shakeup was much more worrisome from my perspective, but even then the core bitcoin protocol remained unaffected."
On August 1, bitcoin forked into two different cryptocurrencies: bitcoin and bitcoin cash.
"Countries can try and ban bitcoin all they want, but people will still use it if they nee...