Bitcoin and other cryptocurrencies are falling-but don't worry just yet

Bitcoin and other cryptocurrencies are falling-but don't worry just yet

Bitcoin and other cryptocurrencies are falling-but don't worry just yet

Last week, there were reports that South Korea's government was planning to ban cryptocurrency trading, but after bitcoin slid, the government backtracked.

A new correction is taking place in the crypto market, after South Korea and China indicated that they could introduce new regulations to crack down on investments and centralized trading, respectively.

"We've seen price falls like this before, and when you look back on them now, you'll see they weren't part of a bubble, just a blip", Jackson said on December 22, when bitcoin's price was around $12,800.

The latest cryptocurrency sell-off comes amid media reports that the People's Bank of China (PBOC) is calling for a wider ban on cryptocurrency trading-related services, located in the country.

In an interview with local South Korean radio station TBS, Finance Minister Kim Dong said that banning trading in digital currencies was "a live option", and that the decision was subject to a thorough government review. South Korea said on Monday 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. The government will also target individuals and firms that provide market-making, settlement and clearing services.

Bitcoin and other cryptocurrencies are falling-but don't worry just yet
Bitcoin and other cryptocurrencies are falling-but don't worry just yet

China shut down exchanges operating on the mainland a year ago - a move that also sparked a selloff, though the market later recovered.

Bitcoin's slide of over over $2,200 triggered a massive selloff across the broader cryptocurrency market, with biggest rival Ethereum down 23% on the day, according to trade website Coinmarketcap, and the next biggest, Ripple, plunging 33%. "But we maintain our stance". However, officials have since confirmed that a complete crackdown is possible and that it is a "live option", reports United Kingdom newspaper the Independent.

"The financial work conference clearly called for limiting "innovations" that deviate from the need of the real economy and escape regulation", Pan said. Comments that were just made public from the country's finance minister has sent a shockwave through the digital coin world. Ethereum dropped to $1,000, albeit trading around $1,300 yesterday.

"From a technical standpoint, bitcoin is under pressure on the daily charts", Otunuga said.

South Korea's largest cryptocurrency exchange Upbit disclosed its amount of daily transactions on January 16 for the first time.

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