China’s biggest online marketplace has fallen from a record $16.8 billion to $4.9 billion in three months, according to a new report.
The state-run Global Times said the Bitcoin Market Market in China, which allows sellers and buyers to trade virtual currency, has dropped from about $16 billion in January to $3.4 billion last month.
The newspaper said China has seen the growth of bitcoin, a peer-to-peer online currency that is decentralized and traded in transactions between users.
Bitcoin has become a popular alternative to the dollar and other currencies in China due to its low fees and anonymity, according the report.
China has become increasingly dependent on bitcoin as a means of conducting transactions, as well as for storing wealth.
“The price of bitcoin has fallen substantially in the last two months, and it will remain volatile,” the report said.
The Shanghai Composite Index of listed companies has dropped by 4.5% from July 30 to July 30.
The Hang Seng Index, China’s benchmark stock index, has fallen 3.8%.