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Bitcoin immersion extends up to 25% due to fear of Cryptographic Crackdown delay

The massive sale of cryptocurrencies in January received a new boost on Tuesday when Bitcoin fell to 25 percent, as the possibility of regulatory repression seemed to spread.

While the largest digital currency fell 25 percent to $ 10,338 at 4:37 p.m. in New York, it was still at the lowest level since the beginning of December, according to composite prices at Bloomberg. When Bitcoin stopped its two-day rally, rival cryptocurrencies also fell. Ripple sank to 40 percent and Ethereum fell by 26 percent.

Speculators around the world struggle to determine when or how the watchdogs of the market can curb a decentralized industry that derives much of its anonymous property value. Many claims that digital currencies represent a bubble have triggered double-digit sales over the past year, only to be followed by rebounds.

In South Korea, closing cryptocurrency exchanges remains an option, said Finance Minister Kim Dong-yeon. a interview with the TBS radio. But the measures first need a "serious" discussion between the ministries, Kim added, offering hope to the merchants that an offensive will not go that far. Kim said that there is irrational speculation and that rational regulation was needed

"The Finance Minister made it clear that he is definitely considering banning crypto trade, and is probably the third largest market," said Neil Wilson, senior market analyst in London for online trading platform ETX Capital. "The news is affecting prices and general sentiment, and follows China's decision to seal mines."

China, which began targeting the industry last year, is scaling up its anti-cryptocurrency measures, particularly online platforms and mobile applications that offer exchange-type services, according to people familiar with the subject .

"We have heard reports that South Korea, China and Japan have considered a shared approach, a path to regulation," said ETX's Wilson, also citing a challenge to the digital currencies of a bill in the Senate. from United States. "It seems that the light touch that has allowed the crypto-boom to explode may come to an end," he wrote in a note to investors.

Less than normal operations in Korea and Japan may have exaggerated movements. "The Bitcoin trade with the Korean won was around 3.3 percent of the total among the major currencies, compared to more than 10 percent reached on several days during Tuesday," said Mati Greenspan, senior market analyst. of the eToro currency platform.

the last two weeks, according to data from cryptocompare.com.

Steven Maijoor, president of the European Securities and Markets Authority, said investors "should be prepared to lose all their money" in Bitcoin, in an interview with Bloomberg TV in Hong Kong. "It has an extremely volatile value, which undermines its use as currency," he said. "Neither is widely accepted."

ESMA warned retail investors against initial offers of currencies in November and is monitoring developments in cryptocurrencies, Maijoor said.

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