Bitcoin, Ethereum, Ripple will Bounce Back
The price of top digital currency bitcoin dipped below $11,000 on Tuesday for the first time since December 5, Ripple and Ethereum also fell significantly following reports of a further crackdown on the cryptocurrency market.
Bitcoin slumped by over 20 percent, trading at $10,966 as of 11:50pm GMT. The cryptocurrency’s market capitalization currently stands at around $184 billion.
Other virtual currencies including ethereum and ripple have also dipped significantly. Ethereum was trading at $1,090, down more than 18 percent in the last 24 hours; while ripple fell by almost 26 percent to $1.37 per token.
Regulators across the globe, in countries including China, India, Brazil and South Korea, have been warning investors about the risks of trading in cryptocurrencies, they have also been making a lot of noise about regulation but so far nothing has actually been done.
According to recent false reports, authorities in China are planning to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralized trading. Regulators will also target people and companies that provide market-making, settlement and clearing services for centralized trading, that but it is not that simple, none of those things are illegal and the only action available to regulators are actions relating to money laundering and tax evasion.
Bitcoin users in India have been facing difficulties with deposits and withdrawals after the country’s banks blocked all crypto-trading. Last month, the Indian Income Tax Department raided bitcoin exchanges across the country, seeking to identify cryptocurrency traders. The raids were conducted because of alleged tax evasion by exchange customers, this is a key issue for exchanges and traders. Cryptocurrency investors should be looking for the safety and security of companies like G-BiT where the system prevents money laundering and tax evasion.
— Live Trading News (@Livetradingnews) January 16, 2018
The fall in prices has been on fairly low volume, about 30% below average, this is an indication that the prices will recover in the near term.