Cryptoсurrency Market Continues to Struggle After Last Week’s News From South Korea
Originally published on: CoinSpeaker
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January 15, 2018
The global cryptocurrency market is recovering after the false regulatory announcement from South Korea. Such currencies as Cardano and NEO increased in value, while Bitcoin and Ethereum receded from their positions.
This weekend the cryptocurrency markets went on contending against the setback caused by a false regulatory announcement from South Korea this past week.
On January 11, Justice Minister Park stated that the ministry is working on drafting a cryptocurrency trading ban bill in order to close down cryptocurrency exchanges. Before long after that the price of almost all cryptocurrencies in the global market lost in value, with Bitcoin and Ethereum falling by nearly 10 percent. A couple of hours later, the Ministry of Strategy and Finance found out about the claims of Minister Park through media reports and emphasized that it does not support or agree with the personal statement of Minister Park.
On January 12, the Blue House, the executive office of President Moon Jae-in, made a public statement and apologized to South Korean citizens for the recent cryptocurrency trading ban controversy. It was pointed out that the ban would not be imposed in the short-term.
The South Korean false ban is not the only regulation of cryptocurrency exchanges’ activity. Earlier China, one of the dominant players in terms of Bitcoin mining activities due to low electricity cost, banned Initial Coin Offerings (ICO) and closed down local Bitcoin exchanges.
It also decided to put restrictions on the use of electricity consumed by the Bitcoin miners. However, regulators have never been able to kill off Bitcoin. But it is clear that they have a lot of bearing when it comes to affecting the market price.
With the exception of bitcoin, Ethereum, and Dash, the top 10 cryptocurrencies in the global market have increased in value after the false ban.
Among the top 100 cryptocurrencies, only 20 managed not to lose valuation in the last 24 hours. In particular, cryptocurrencies that are heavily concentrated in the South Korean cryptocurrency exchange market in terms of daily trading volume and user activity have recovered faster than others.
According to the data from CoinMarketCap, the Bitcoin price decreased by 0.9% in the last 24 hours and currently makes up $13,722, while Ethereum suffered a 1.93% loss, reaching $1331,79. Conversely, some currencies enjoyed an increase in value. Specifically, the price of Cardano increased by 4.30% and now runs at $0,833502. Another cryptocurrency that scored an advance is NEO. It increased by 13.89%, reaching $157,99.
Given that the South Korean cryptocurrency exchange market is already recovering at a rapid rate, the global market will likely soon recover. However, there is one more thing that can fluster cryptocurrency admirers.
Bitcoins are created as a reward for a process known as ‘mining’. The first bitcoin was created in January 2009, there were nearly 21 million coins left to be mined. As more coins were mined, the higher rose the bitcoin’s price.
So far on January 15, 2018, 16,803,537 BTC have been mined and there’s only 4196463 – less than 20 percent — left for miners to acquire. This leads to growth in the demand for the cryptocurrency, which allows to speculate that the bitcoin prices will take a flight in the near future.