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Another bitcoin bubble may have burst in China

Virtual currency crashes under greater scrutiny by central bank

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An attendant holds a bitcoin sign during the opening of Hong Kong's first bitcoin retail store in February 2014. Bitcoin lost roughly half its value after hitting a record high in yuan terms in the space of one week.   © Reuters

HONG KONG/BEIJING -- Bitcoin has experienced another epic rise and fall in China, home to most of the trading in the virtual currency, with actions by the authorities hastening the sell-off just as they did in 2013.

After hitting a record high in yuan terms, bitcoin lost roughly half its value in the space of a week. It reached 8,896 yuan ($1,290) on Jan. 5, according to Shanghai-based bitcoin exchange BTCC, topping the high set in 2013. Then came a plunge precipitated by an upturn in the offshore yuan.

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