Published: Thu, January 18, 2018
Research | By Raquel Erickson

Rebound in Cryptocurrencies Prices Early Today, Ripple Surges over 50%

Rebound in Cryptocurrencies Prices Early Today, Ripple Surges over 50%

Despite the fact that it's the most prominent and most popular cryptocurrency, it went down by 11% to trade below the $10,000 on Bitstamp exchange. On Wednesday, the dubbed "king of cryptocurrencies" dropped to below $10,000 for the first time since the end of November, before making a small recovery on Thursday.

The government has been striving to rein in the virtual currency frenzy in Asia's fourth-largest economy while contemplating a bill to ban cryptocurrency exchanges. While it has not been a good week for bitcoin, and cryptocurrency as a whole, it is safe to say we will definitely be seeing more news from it in the coming months.

"You have more regulatory uncertainty. and because of these falls, you have these other fallouts", he said, referring to the collapse of some cryptocurrencies in the recent slump in prices.

This sharp drop in value caused widespread panic among investors, with many labelling the price movement "Bitcoin's crash".

The sell-off was reportedly triggered by worries over tighter regulation in the key markets of South Korea and China.

Investors have also been putting money into newer virtual currencies like Ethereum and Ripple, which were created to do more sophisticated types of transactions than bitcoin.

Bitcoin is the gold standard for crypto, and a lot of the altcoins did not even exist back then. Government officials continued to shutdown bitcoin exchanges and moved to ban all new cryptocurrency companies.

"The government stance is that it needs to regulate crypto-currency investment as it is a largely speculative investment", its finance minister Kim Dong-yeon said in a radio interview on Tuesday.

Next, news came that the Chinese government was going to be even stricter on cryptocurrencies after already banning cryptocurrency exchanges previous year.

While many observers say the recent falls show that the bubble has burst, those backing the nascent markets say that regulation is welcomed and wild price swings to be expected.

Traders are debating the significance of the volatility in cryptocurrencies and fast conditions are expected to continue. On Tuesday, reports that China and Russian Federation may enact more regulations around cryptocurrency exchanges sent Bitcoin, Ethereum, and Ripple dropping billions off their market caps. XRP, the native cryptocurrency of start-up Ripple, had enjoyed a month-long string of share price gains until its value sustained a devastating loss of 50 percent on January 16.

Comparing the asset class to Viagra, which was discovered in heart-medicine research, a Russian central banker Wednesday said that holders of cryptocurrencies now view them not as a means of payment, but as an investment asset. "This is far from guaranteed given the existence of alternatives with better characteristics".

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