The Dramatic Cryptocurrency Selloff Wiped off $200B in Two Days

Doris Richards
January 18, 2018

However, Meltem Demirors, director of development at Digital Currency Group, told Bloomberg on Tuesday that despite Tuesday's drop, bitcoin, ripple and other cryptocurrencies have been "incredibly resilient to bad news". And that's just in the past 24 hours.

Among the cryptocurrencies to take a hit on Wednesday was ripple, which by 5pm was down 13.5 per cent - having recovered some of its earlier losses.

Why has bitcoin's price fallen?

The $10,000 milestone is 50 percent below the $20,000 peak that bitcoin touched just one month ago.

"Cryptocurrencies could be capped in the current quarter ahead of G20 meeting in March, where policymakers could discuss tighter regulations", said Shuhei Fujise, chief analyst at Alt Design.

These regulations aren't being considered only in South Korea, the European Union agreed in December on harsher rules to prevent money laundering and terrorism financing on cryptocurrencies exchange platforms. Business Insider reported that one of the analysts at the trading platform eToro said that "the declining volumes from Japan and South Korea appeared to be behind Tuesday morning's sell-off".

The price of the cryptocurrency rapidly declined after it emerged that South Korea could be on the verge of banning bitcoin trading altogether.

The markets are also affected by rumors that China is preparing to implement a complete ban on bitcoin mining.

It is the biggest sell-off in bitcoin in at least three years, which peaked at almost $US20,000 back in December, but it did not suffer as badly as many of its cryptocurrency rivals.

It also follows moves in China to clamp down on trading in digital currencies.

2017 has seen the cryptocurrency rise all the way from the $1,000 mark at the start of the year, as it gains traction across mainstream markets. However, is it reason enough to panic?

"So unsurprisingly, with so many South Koreans keen to fulfil their financial hopes and dreams through cryptocurrency trades, there is resistance to plans for a crypto-clampdown", the news agency added.

The world's most valuable cryptocurrency, bitcoin, has lost over half its value since it smashed the $20,000 barrier in mid-December.

Other reports by Iphone Fresh

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