Bitcoin Price Drops 18 Percent Over Fears of Ban in South Korea

Advertisement
By Retuers | Updated: 16 January 2018 16:26 IST
Highlights
  • Bitcoin's value eroded 18 percent, Ethereum down 23 percent
  • South Korea is reportedly planning to clamp down on cryptocurrencies
  • However, plans to ban digital currency exchanges are not yet finalised

Bitcoin tumbled 18 percent on Tuesday to a four-week trough close to $11,000 (roughly Rs. 7.05 lakhs), after reports that a ban on trading of cryptocurrencies in South Korea was still an option drove fears grew of a wider regulatory crackdown. Bitcoin's slide triggered a massive selloff across the broader cryptocurrency market, with biggest rival Ethereum down 23 percent on the day, according to trade website Coinmarketcap, and the next-biggest, Ripple, plunging 33 percent.

South Korean news website Yonhap reported that Finance Minister Kim Dong-yeon had told a local radio station that the government would be coming up with a set of measures to clamp down on the "irrational" cryptocurrency investment craze.

South Korea had said on Monday that its plans to ban virtual coin exchanges had not yet been finalised, as government agencies were still in talks to decide how to regulate the market.

Advertisement

Bitcoin slid on the latest news, trading as low as $11,191.59 (roughly Rs. 7.17 lakhs) on the Luxembourg-based Bitstamp exchange, down 18 percent on the day, for a short period putting the digital currency on track for its biggest one-day fall in three years.

Advertisement

"It's mainly been regulatory issues which are haunting the cryptocurrency, with news around South Korea's further crackdown on trading the driver today," said Think Markets chief strategist Naeem Aslam, who holds what he described as "substantial" amounts of Bitcoin, Ethereum and Ripple.

"But we maintain our stance. We do not think that the complete banning of cryptocurrencies is possible," he said.

Advertisement

Cryptocurrencies enjoyed a bumper year in 2017 as mainstream investors entered the market and as an explosion in so-called initial coin offerings (ICOs) - digital token-based fundraising rounds - drove demand for Bitcoin and Ethereum, the second-biggest digital unit.

The latest tumble leaves Bitcoin down more than 40 percent from the record high around $20,000 (roughly Rs. 12.8 lakhs) it hit in mid-December, wiping about $130 billion (roughly Rs. 8.33 lakh crores) off its "market cap" - the unit price multiplied by the total number of Bitcoins that have been released into the market.

Advertisement

The news from South Korea came as it emerged a senior Chinese central banker had said authorities should ban centralised trading of virtual currencies as well as individuals and businesses that provide related services, according to an internal memo from a government meeting seen by Reuters.

Bloomberg reported on Monday that Chinese authorities plan to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralised trading.

"(It) seems like it's uncertainty spooking the markets ... with regulations unclear," said Charles Hayter, founder of data analysis website Cryptocompare. "(Traders) are taking profits on the increased risk scenarios going forward."

A director at Germany's central bank said on Monday that any attempt to regulate cryptocurrencies must be on a global scale as national or regional rules would be hard to enforce on a virtual, borderless community.

By 1000 GMT Bitcoin was trading down 16 percent on the day at around $11,500 (roughly Rs. 7.37 lakhs) on Bitstamp.

© Thomson Reuters 2018

 

Also seeCryptocurrency Prices across Indian exchanges

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. Best Diwali 2025 Wishes, Quotes, and Facebook Statuses to Share
  1. Mysterious Asteroid Impact Found in Australia, But the Crater is Missing
  2. Thanal Comes to OTT: Everything You Need to Know About This Tamil Action Thriller
  3. Madam Sengupta Is Now Streaming: Know Where to Watch This Bangla Crime Thriller
  4. Ryugu Samples Reveal Ancient Water Flow on Asteroid for a Billion Years
  5. Scientists Create Most Detailed Radio Map of Early Universe Using MWA
  6. Mayor of Kingstown Season 4 OTT Release: Know When, Where to Watch Jeremy Renner's Crime Drama
  7. Our Fault Is Streaming Now: Know All About This Gabriel Guevara and Nicole Wallace Starrer
  8. The Conjuring: Last Rites Is Now Streaming Online: Know Where to Watch the Latest Installment from the Horror Franchise
  9. Delhi Crime Season 3 OTT Release: Know When to Watch This Shefali Shah Thriller Series
  10. Vast Space to Launch Haven-1, the World’s First Private Space Station in 2026
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.