Bitcoin: The rise and the fall

Katrina Barker
January 19, 2018

The price of the world's biggest and best-known cryptocurrency fell on the Luxembourg-based Bitstamp exchange, a six-week low and close to half the peak price of nearly $20,000 it reached in December.

Bitcoin briefly fell more than 17% to a six-week low after South Korea Finance Minister Kim Dong-yeon said that shutting down digital currency exchanges was still an option for the government.

Steven Maijoor, chairman of the European Securities and Markets Authority, said investors "should be prepared to lose all their money" in bitcoin, in a Bloomberg TV interview in Hong Kong. Such a ban would require a majority vote from the country's National Assembly, which the Evening Standard reports could take months or possibly years.

In South Korea, the chief financial regulator told MPs in Seoul on Thursday the government was considering shutting down all local virtual currency exchanges. That is one of the reasons for the strong rebound, which we are seeing today. "I feel sorry for the restaurant owner, who keeps his business up and running until the late hours just to sell one more piece of chicken".

Bitcoin, which skyrocketed almost 2,000 percent past year and hovered near a peak of $20,000, slipped below $10,000 on the Luxembourg-based Bitstamp exchange on Wednesday, adding to a 20 percent slump over the last three days. These range from concerns about potential bans on trading in the key markets of China and South Korea, to withdrawals to pay for Chinese New Year celebrations, hedge fund market manipulation, the introduction of futures and just general profit-taking. The country has seen a bitcoin craze, with young and old betting on the cryptocurrency to build wealth.

After declining for two consecutive days, the crypto market started recovering yesterday evening.

Ethereum, the second-largest cryptocurrency by market value, was down 18 percent since Tuesday, according to website CoinMarketCap. Ripple fell 31% to about 95 cents.

Due to this exponential growth and the constant fluctuations of its price, many analysts and experts have called Bitcoin a Bubble and governments around the world are starting to express their desire to regulate the crypto market.

A petition to the Blue House, South Korea's presidential residence, demanding a stop to regulating virtual currency has reached 200,000 signatures and will now get an official response.

Other reports by AllAboutTopnews

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