Bitcoin crashes after China exchange rejects yuan

The price of digital currency bitcoin dropped by 38% on Wednesday after a Chinese exchange said it would not accept payment in yuan, The Wall Street Journal reported. The value of a bitcoin has tumbled 50% in the past two weeks, hitting US$549 on Wednesday from more than US$1,100 at the start of December. China has emerged as a major driver of the bitcoin market in recent months as enthusiasm for the currency helped send prices soaring more than tenfold. In recent weeks, prices have tumbled after China’s central bank barred financial institutions from making transactions in the currency.