Bitcoin (available on Coinbase) extends the dramatic selloff in Wednesday trade, declined below $10,000 mark for the first time since November 28. The broader selloff was observed in cryptocurrency markets in the last two days, amid concerns over regulators. Bitcoin (available on Coinbase) lost more than half of its value since hitting the highest level of $20,000 on December 17. Currently trading around $10,010, Bitcoin (available on Coinbase) lost more than 30% of value in the last two days alone.
Other major cryptocurrencies, including Ripple (available on Binance) (XRP), Ethereum (available on Coinbase) (ETH), and Bitcoin (available on Coinbase) cash (bch) dived at a high double-digit rate in the last two days. Bitconnect was the worst performer, losing more than 95% of price since the start of this week, due to the announcement that it is closing its exchange indefinitely.
Digital currency traders all over the world are shorting their positions, while others are sitting tight on the side to see the impact of regulatory uncertainty on prices.
The price of Bitcoin (available on Coinbase) and other cryptocurrencies started falling last Wednesday after South Korean minister hinted the potential ban on cryptocurrency trading.
Digital currencies have experienced a big blow this week on Tuesday when South Korean minister re-established their tough stance on cryptocurrency trading. In addition, South Korea has already banned creating anonymous cryptocurrency trading accounts.
“South Korea will make a decision on a proposed ban on cryptocurrency exchanges after sufficient consultation and coordination of opinions,” the South Korean Minister said on Monday.
Although global markets are accelerating on how to regulate cryptocurrencies, China has officially banned every kind cryptocurrency trading. They have also blocked trader’s access to offshore trading platforms that offer cryptocurrency trading.
“There is a lot of panic in the market. People are selling to try and get the hell out of there,” said Charles Hayter, founder of Cryptocompare, which owns cryptocurrencies.
On the other hand, France, Germany, and Indonesia are planning crackdowns on cryptocurrencies trading in the following days. Governments all over the world fear that crypto markets are turning out to be a haven for money launderers and terrorists. On the whole, Bitcoin (available on Coinbase) and other cryptocurrencies are tumbling on the fears of government’s crackdown along with a wave of selling. Analysts and fund managers are suggesting traders adopt the wait and the see strategy.
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