Bitcoin And Ripple Price Increases In Possible Cryptocurrency Rebound

Marie Harrington
January 19, 2018

Prices have now fallen 52 percent since bitcoin's all time high $19,343.04 in December.

"I would say the strong rally in bitcoin and other cryptocurrencies we saw previous year is over", analyst Makoto Sakuma of Tokyo-based NLI Research Institute told Reuters.

Bitcoin last fell below $10,000 on November 30.

Cryptocurrencies fell dramatically during early trading on Wednesday, wiping off nearly $2 billion from the total market capitalization.

"There are no disagreements over regulating speculation", such as using real-name accounts and levying taxes on cryptocurrency trading, Finance Minister Kim Dong-yeon is reported to have said this week.

"(The government) is considering both shutting down all local virtual currency exchanges or just the ones who have been violating the law", Choi said in parliament, as quoted by Reuters. 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. That is one of the reasons for the strong rebound, which we are seeing today. One virtual currency exchange, Bitconnect, dived 93 percent late Monday.

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However, Meltem Demirors, director of development at Digital Currency Group, told Bloomberg on Tuesday that despite Tuesday's drop, bitcoin, ripple and other cryptocurrencies have been "incredibly resilient to bad news".

Bitcoin has slumped 20 percent this week as traders worry that regulators in South Korea will crack down on trading of digital currencies. Recently, beating Ethereum to the second place, Ripple went up by 56% on Friday.

News has developed in South Korea again, as the nation considers a closure of cryptocurrency exchanges.

The price of bitcoin fell as much as 20 percent Wednesday, but later recovered and was almost flat at $11,392 around 5:10 p.m.

A slew of blockchain- and bitcoin-related stocks sank on Wednesday following a steep fall in the price of the cryptocurrency over the past few days on fears of regulatory clampdowns. Even though it fell to that point, it's recovered slightly and is now trading at $10,129.96 at the time of this writing.

According to data from CoinMarkCap, the third-largest cryptocurrency Ripple has dropped to $1.07, down 22.8% in the last 24 hours and down from a high of $3.80 on 4 January.

Other reports by TheSundaySentinel

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