Published: Wed, January 17, 2018
Research | By Raquel Erickson

The top 10 cryptocurrencies are all plunging in a big sell-off

The top 10 cryptocurrencies are all plunging in a big sell-off

South Korea is one of the largest markets for trading cryptocurrencies. A number of South Korean citizens have responded by petitioning the government to ease up on the policy.

Shutting down digital currency exchanges is "a live option but government ministries need to very seriously review it", he said. Later he seemed to backtrack. The government expressed their intention to stop the cryptocurrency trading in the country, while freezing accounts and working with major financial institutions to stop the crypto "heat". Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

Bitcoin fell as much as 14% in early trade, breaking through both $13,000 and $12,000 levels, but has recovered slightly since then.

At the time of writing (17 January), bitcoin's value had plunged to $10,811, a drop of around 46pc (compared to a high of $19,500 in December). The continuous decline in bitcoin price over the last few days is indicating that the selloff will most likely continue and chances of recovery are grim right now.

Bitcoin and other cryptocurrencies, which had flamed late previous year, all plunged on Tuesday by double digit percentages, which analysts explained among other things by an increased willingness to regulate the sector. But the cryptocurrency giant remains more than 1,000 higher over the last twelve months.

Ripple's XRP has seen gains of more than 4,000% in the past year, but recent slumps have wiped out more than half its value in less than two weeks. China also reported to be cracking down even further on cryptocoin trading Bloomberg reported Monday that China was planning to block domestic access not only to Chinese platforms but to offshore ones as well. It sounds as if person to person or decentralized trading would still be allowed.

It has been a huge crash in the BTC markets and the crypto markets as a whole as news and fears of action from the South Korean regulators over the crypto exchanges, coupled with the news of the shutdown of the bitconnect exchange, has led to fears and panic selling in the markets. The decline appears to have spooked the market, with other coins selling off in at the same time.

Bitcoin was last down 25 percent at US$10,182.00 on the Luxembourg-based Bitstamp exchange.

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