The cryptocurrency market is experiencing a series of crashes in the prices of all of its players.
All cryptocurrencies are going through a major selloff period. A majority of them have fallen below 10% in the morning, and the price of bitcoin has dropped to $12,000.
But considering bitcoin’s noticeable dip in value, bitcoin is still the best performing cryptocurrency when you compare it to its rivals. Ripple, after a meteoritic rise that made it briefly the world’s number 2 cryptocurrency, has dropped as much as 26%.
Ripple prices went as low as $1.23 (£0.89) today from a weekend high of $2.05 (£1.49) and an all-time high of $3.84 (£2.79) earlier this month.
The market cap of Ripple has fallen by $31 billion from its Saturday price of $79 billion (£57 billion) to just $48 billion (£34 billion) at 10 a.m., according to CoinMarketCap.
Ethereum also had a fall in its price of over 18%. Considering this, it can be said that the world’s second and third cryptocurrencies have had bigger plunges than bitcoin.
But the price of cryptocurrencies has always been governed by volatility. When a new high is reached in a short amount of time (like 300% in 3 days) the prices settle down on a 50% price or somewhere close to that value. That is the crypto way, the values here tend to fluctuate wildly and faster than traditional assets and currencies.
This morning’s plunge came amid increasing suggestion in South Korea that it is possible that official might try to take new regulatory actions concerning cryptocurrencies. The country’s Finance Minister, Kim Dong-Yeon, suggested that Korea might issue a ban on trading in digital currencies entirely, depending on a government review’s result.
The government has stated that such plans are only suggestions, and that more discussions need to be held concerning the matter. As another government official announced the previous week that trading could be banned, another instant sell-off was triggered, and it prompted 200,000 people to petition to make bitcoin trading legal.