Bitcoin falls over 20% in Asia over new restriction fears

Bitcoin falls over 20% in Asia over new restriction fears

Troy Powers
January 18, 2018

Bitcoin is suffering another one of its trademark nosedives on Wednesday. Given that South Korea is the world's third largest market for cryptocurrencies after the U.S. and Japan, anything that happens there is sure to have global repercussions.

Bitcoin, the famous crypto currency has been reported at a 24 hour low of $9,450 when it fell to a sub $10,000 mark on both Coinbase and Bittrex exchanges at 3:33 AM Pakistan time. The big unknown, however, is whether the recent wild uptick in value is a blip that is now being corrected in the market, or if Bitcoin still has new heights to reach. Monday's gains just turned into major losses, if you're still holding onto any type of currency.

Fears of a regulatory crackdown have sent cryptocurrencies tumbling as investors rush to sell their coin.

Bitcoin tumbled below US$10,000, bringing its loss to nearly 50 per cent from a record set only a month ago, as increased scrutiny from regulators around the world weighs on the digital-coin craze.

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At the same time, others will be tempted to buy up bitcoin now, while it's relatively cheap, in the hope that the decline is only temporary. What is behind the recent price drops, and will they continue to worsen? Tuesday's XRP prices are still at a 4,204% premium to where the token was trading a year ago, but the dip will certainly call into question XRP's valuation relative to its cryptocurrency peers.

A multitude of financial experts have described bitcoin as a bubble, which could keep inflating until it completely collapses.

Bitcoin trading using the Korean won was about 3.3 per cent of the total among major currencies, compared with more than 10 per cent reached on several days over the past two weeks, according to cryptocompare.com data. During the day it tumbled as much as 26 percent. In the US, the Securities and Exchange Commission asked at least 15 funds to pull applications this month for bitcoin-related exchange-traded funds. Exchanges and ICOs have already been regulated by the Chinese government, but it seems like the government is looking to abolish it as a whole. Earlier they hit their lowest levels since trading began last month.

The value of Bitcoin is now hovering at RM43,000.