Bitcoin Crashes Below $10000

It touched an all-time high of $19,783 on December 17th and has been steadily declining since.

Yesterday the world’s most popular cryptocurrency lost nearly half of its peak value from a month ago, trading at under $10,000 (£7,229) – its lowest value since 27 November past year, according to Coinbase.

KitGuru Says: It looks like a lot of people have been dumping their Bitcoin over the last few weeks, leading to the 50 percent drop we have seen this month.

The price of bitcoin has fallen below $10,000 for the first time since early December.

The selloff of cryptocurrencies has been continuing into Wednesday, with bitcoin falling below what many consider to be a psychologically important mark of $10,000.

But the proposed move by South Korea would go even further, meaning an outright ban rather than restricted access, and is reportedly inspired by a desire to target “speculative frenzy and crime” associated with cryptocurrencies. The price of ethereum, another digital currency, had slipped 7.8 per cent to $1,190.45 as of 8.04am GMT.

Traders holding cryptocurrencies must decide whether to quit the Bitcoin, according to the analysts. There have been some hints that South Korea might regulate cryptocurrencies more strictly, but it’s hard to believe those rumors are enough to drive a big global sell-off.

Last week, South Korea’s justice minister said that his ministry was preparing a bill that could ban trading via some cryptocurrency exchanges.

At the same time, others will be tempted to buy up bitcoin now, while it’s relatively cheap, in the hope that the decline is only temporary.

“There are no disagreements over regulating speculation“, such as requiring the use of real names on accounts and levying taxes on cryptocurrency trading, Kim said.

The influential investor Warren Buffett has also made negative pronouncements about Bitcoin and other virtual currencies, and has steered clear of them when making purchases for his Berkshire Hathaway investment fund.

“Whether the animal spirits have already released their grip, remains to be seen and this can not be ascertained from a two-day slump”.