All Chinese Exchanges to be Closed on Sep 30

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Panic also spread to other cryptocurrencies, with bitcoin's main rival ether - sometimes called ethereum - also down around 10 percent, according to Coinmarketcap.

This said, due to difficulties in interpreting and accessing the full range of relevant data, it's hard to pinpoint quite how dominant China is in the global market.

Meanwhile, BTCC, a bitcoin exchange, said its China-based exchange will end all operations on September 30 following unverified reports that Chinese authorities are preparing to ban cryptocurrency exchanges.

As the news broke, bitcoin price has plunged by 16% and is expected to come down below $3,000.

Additionally, the Chinese digital finance organization, China's National Internet Finance Association (NIFA), released a statement today that cryptocurrencies like Bitcoin may be hot with investors but was a payment conduit for illegal activity, CoinDesk reported. The bank said under national laws merchants in the country can not accept digital currencies as payment for goods and services, while cryptocurrency exchanges were also not allowed.

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The previous year has seen an astonishing boom in the two most popular cryptocurrencies: bitcoin and ether-the latter being the currency of the Ethereum network. This morning, BTCC tweeted that it had made a decision to halt trading on its BTCChina Exchange.

Bitcoin is some way off its record high of $4,950 as it continues to falter amid concerns that the Chinese government is launching an anti-cryptocurrency movement to crack down on digital currencies. However, the Chinese government is considering creating its own cryptocurrency.

It's been a tough week for bitcoin, which yesterday hit a three-week low after Jamie Dimon, the chief executive of JPMorgan Chase labeled the digital currency a "fraud" and said he would fire employees who traded in cryptocurrencies. Both cited the recent notice from the People's Bank of China that banned fundraising through initial coin offerings (ICOs), or token sales.

The cryptocurrency ban will only apply to trading on exchanges, people familiar with the matter told Bloomberg on Monday. As for exchanges' prices, Bitcoin is trading at about $2904.64 on OkCoin, $2887.97 - on Huobi, and $2908.37 - on BTCC at press time.

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