Baidu, China’s largest search engine, announced this week that it would no longer accept transactions in the digital currency. The announcement caused a sharp drop in the price of bitcoin. The announcement, which was posted on Baidu, followed a decision by China’s central bank to ban the country’s financial institutions from trading in Bitcoins.
The price of bitcoin reached $1,000 for the first time in late November and shortly after reached $1,200. It then plummeted to $700. The fluctuations in the exchange rate are shown in the chart below created by Blockchain.info
Meanwhile, on BTC China, the country's largest bitcoin exchange, the price of bitcoins has fallen below $700. The chart below, from Bitcoincharts.com, shows the decline, as measured in Chinese yuan.
