Cryptocurrency Market Plunges In Wake of S Korean Regulatory Crackdown

Jan 11, 2018, 00:26
Cryptocurrency Market Plunges In Wake of S Korean Regulatory Crackdown

Because of the significant price drop, Ripple's market capitalization fell below $100 billion and dropped the cryptocurrency down to third place in terms of market capitalization.

"It highlights the undeveloped nature of trading in Bitcoin, reporting in Bitcoin, market data sources for people to utilise when they're wanting to track performance or monitor trends in that space". This anonymity, however, allows for cryptocurrencies to be used for transactions by criminals, which has provoked discussions around the world about how a government could possible regulate the market.

But in a tweet yesterday, it said: 'We excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.

One of the most popular cryptocurrencies after bitcoin (BTC) and ethereum (ETH), the ripple (XRP) fell 18% on Wednesday to trade at $1.98 (10.40 am), data on Coinmarketcap show.

That caused confusion among investors and partly contributed to a major sell-off, also fuelled by news that South Korean and Chinese regulators planned to increase monitoring of trading and mining. As news about the real reason for the price correction spread, the cryptocurrency market started to slowly recover lost ground and the crypto market cap presently stands at $760 billion.

Bitcoin accounts for 35 percent of global cryptocurrency trading and it is the most influential cryptocurrency on the market.

Bitcoin was one of the currencies to sink when CoinMarketCap, one of the industry's most prominent global indexes, carried out the move without any warning, resulting in a steep drop in all virtual coins they track.

The total market capitalisation of some 1,300 cryptocurrencies tracked by the website then plunged 20 per cent from around $830bn to $669bn, it has been reported.

The year 2017 may forever be known on Wall Street as the year of bitcoin. The site is mainly for English readers and the elevated Korean prices are not reflective of what English traders would be able to achieve.