Bitcoin Cash rally cools, dips below $700

© Reuters. Bitcoin Cash rallied to $719 before paring gains – Bitcoin Cash gave up some of its early session gains as it dipped below $700 on Thursday while its illustrious rival Bitcoin continued its trend higher following a slump earlier this week.

Bitcoin Cash rose $14.35, or 2.21%, to $662, retreating from a session high of $719.

The move higher in Bitcoin Cash comes a few days after the People’s Bank of China (PboC) sent shockwaves through the cryptocurrency market, after imposing a ban on individuals and businesses from raising funds through initial coin offerings (ICOs).

An initial coin offering ICO is a means fundraising via the use of cryptocurrency in which a company attracts investors by releasing its own digital currency which can appreciate in value if the business is successful.

On the U.S.-based Bitfinex exchange, bitcoin rose to $4,614.0, up $24.9 or 0.52%, as it seeks to return to its recent peak of $4,911.80. At current prices Bitcoin boasts a market cap of $76.31 billion.

The Chinese government’s latest measures to curb the activity of initial coin offerings are seen as a threat to the strong demand currently underpinning cryptocurrency growth.

Ethereum, in particular, is widely believed to vulnerable to a dip in demand following these latest regulatory measures, as ICO issuers often request payment in ether – a currency transacted through the Ethereum network.

Ethereum fell 1.61% to $332.

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