Yahoo Finance Bitcoin Sinks to Below $9,500 in Cryptocurrency Rout
Investing.com - The price of digital currency bitcoin sank to below the $9,500 level on Wednesday, down by more than 50% from its December peak amid a rout in the cryptocurrency market sparked by fears over a regulatory crackdown.
Bitcoin was trading at $9,302 by 10:32 AM ET (15:32 GMT) on the Bitfinex exchange, down 20% from its previous close, after losing 18% on Tuesday. It was bitcoin’s largest two-day rout since 2015.
Other major digital currencies were hit with similar steep declines. Ethereum, the world’s second largest cryptocurrency by market cap, was last at $771.78 on the Bitfinex exchange after falling 19% the previous day.
Ripple's XRP token was trading at $0.87 on the Poloniex exchange, down around 34% for the day.
Cryptocurrencies have experienced a volatile start to 2018 after a massive rally last year as worries over increased regulatory scrutiny hit the market. Reports that South Korea and China could ban cryptocurrency trading have sparked fears of a wider crackdown by regulators.
Cryptocurrency prices plunged late last week following reports that South Korea may be preparing to ban trading of virtual currencies on domestic exchanges. The country is one is one of the largest markets for major coins like bitcoin and ethereum.
South Korea’s Finance Minister Kim Dong-yeon said Tuesday that banning trading in digital currencies was “a live option”.
Cryptocurrency trading in South Korea is highly speculative and digital currencies are often traded at a premium, meaning that they are priced significantly higher in the country's exchanges than elsewhere in the world.
South Korea’s unease over cryptocurrency trading follows drastic moves taken by China, which shuttered cryptocurrency exchanges last year.
Analysts at Citi said Wednesday that bitcoin could lose 50% of its value from current levels.
Bitcoin could fall into a range of $5,605 to $5,673 based on technical factors and this possible move "looks very likely to be very speedy," the analysts wrote in a research note.
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