What’s Causing The Crypto Market Worldwide To Plummet?
The cryptocurrencies market has so far had a rocky start to the new year with prices of the top coins plummeting alarmingly. On January 16, 2018, as of this writing, only one out of the top 100 coins is in the green on CoinMarketCap.
Market Topple For All Coins
The total market still stands at $580 billion, but it is still trying to recover from the earlier drop to roughly $543 billion.
In fact, January 16, 2018, has been a particularly sad day in the recent history of all cryptocurrencies. Bitcoin, ethereum, Ripple, and pretty much any other popular coin you could think of are falling today after uncertainty over the crypto market in South Korea and China fueled a panic-driven sell-off of virtual currencies.
Bitcoin prices plunged over $3,000 between on the morning of January 16, 2018, hitting the lowest-ever for the month at $10,500.
While the volatility of the crypto market was relatively higher opening the year, the erroneous report emanating from South Korea about a possible regulatory crackdown created a ruckus in the worldwide crypto market. China’s recent accounts of clamping down on mining operations and other far-reaching regulations have also sent chills through the sector.
Apparently, many investors didn’t want to leave the fate of their crypto holdings to chances after South Korea’s Finance Minister Kim Dong-Yeon reiterated that a ban on virtual currencies was still a “live option.”
The South Korean government did later provide reassurance that an outright ban on crypto assets is not necessarily imminent.
The Office for Government Policy Coordination stated on January 15, 2018, saying that pulling the plug on virtual currency exchanges is just one of the many possible actions the government is deliberating on to protect investors from crypto volatility and speculations. It reassured that a final decision would be taken only “after sufficient consultation and coordination of opinions.”
Asia Ripe with Regulation
As mentioned above, it’s not just South Korea. Speculations are rife that China is also prepping to block domestic internet users from accessing international exchanges. The country had already imposed an outright ban on Chinese ICOs and exchanges earlier last year.
On January 12, 2018, BTCManager reported how the Chinese government is walking the extra mile to make business increasingly difficult for homegrown crypto mining companies. Most of the bigger companies are already preparing to expand to overseas markets in anticipation of a total crackdown.
January 16, 2018, will undoubtedly be remembered as a bloodbath for the cryptosphere. However, it’s observed this market movement is fairly common and happens almost every quarter.