Bitcoin dips after report of China exchanges meetings

FILE PHOTO: Bitcoin (virtual currency) coins are seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, May 27, 2015. REUTERS/Benoit Tessier/File Photo

LONDON - The price of bitcoin fell from one-month highs on Wednesday after sources at bitcoin exchanges in China said the People’s Bank of China had summoned some smaller exchanges to a closed-door meeting.

The central bank announced last month it was investigating trading at some of the biggest Chinese players to fend off market risks.

Market participants worry Beijing will seek to clamp down on domestic bitcoin trading as it seeks to stem a flow of capital out of the country that has put pressure on the yuan.

A Bloomberg report on Wednesday’s meeting coincided with an early 4 percent fall in the global price of bitcoin before it recovered in morning trade in Europe.

By 1425 GMT it was trading 1 percent - or around $10.40 - lower on the day at $1,042.79. BTC=BTSP