Cryptocurrency

Bitcoin Hits Below $12,000, Other Cryptocurrency follow suit

South Korea has been found to be the hotbed for cryptocurrencies, while China stands as the leader in the mining of these computerized coins.

Bitcoin, one of the most well-known virtual currencies of the world, crashed below $12,000; jurisdictions are being blamed for the sudden stringency shown towards the virtual currencies.

Bitcoin Hits Below $12,000, Other Cryptocurrency follow suit

The last weeks of December 2017 saw a high rise of $20,000 in the value of bitcoins but have drastically lost 20% in the recent days along with the other virtual coins. As per researcher David Madden, the rate for bitcoins has dropped 40% from its all-time high prices.

Besides bitcoins, other virtual currencies like ethereum, ripple and bitcoin cash also saw a downfall of double digits by January 16, afternoon. Neil Wilson, an analyst from ETX Capital also feels through the market rates for bitcoins fluctuate this high turbulence is due to the regulatory measures taken against virtual currencies by different governments in recent days. This proves to be right because the decision of South Korean government to ban crypto exchanges last week started the price sag of bitcoins; the government later backtracked from its decision. Justice Minister Park Sang-Ki declared that Seoul was preparing a bill to shut down the virtual exchanges because these were encouraging gambling and speculations.

Almost 20% of bitcoin transaction takes place only at South Korea and hence this decision had a major impact on the prices of the virtual currencies. Another analyst, Lukman Otunuga from FXTM forex forecaster feels the decision from Chinese government to crackdown the virtual currencies will lead to further decline in the market value of bitcoins. Investors in bitcoins are facing a hard time in getting back the investment they made in purchasing these virtual currencies and this phase is going to be learning for all future investors in such currencies.