Ripple, Bitcoin and Ethereum - Cryptocurrencies Edged High on Thursday

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

Bitcoin's recent price drop did not occur in isolation, and nearly every major cryptocurrency has experienced large value drops during the week.

Here's the latest on bitcoin and why its value has plummeted. The cryptocurrency opened at $11,348, according to CoinDesk, and dropped over $1,600 to hit a low of $9,685, though it's since recovered slightly and is now trading at $9,702.

"Having said that, this narrative has been around for many weeks now and isn't really new but it has once more raised the spectre of tighter regulation on this market".

Bitcoin hasn't caught on as a currency for buying things, as intended.

To break it down a step further, Ripple lost almost 40% of its value on the market, while Ethereum had its value drop by 26%. South Korea has since dispelled any rumors of an outright ban of cryptocurrency, but the damage to the market had already been done.

Korean Finance Minister Kim Dong-yeon said Tuesday that banning trading in digital currencies was "a live option".

Korea is home to one of the world's biggest private bitcoin exchanges, with more than 2 million people estimated to own some of the best-known digital currency. It's also a good idea not to invest all your savings in crypto trading even if you're incredibly confident in your knowledge of Bitcoin and other altcoins. Other currencies like Ripple, Ethereum, BitcoinCash and Litecoin have experienced steep falls.

South Korea is considering a new law that would outlaw cryptocurrency exchanges in a bid to quell speculative frenzy and criminal transactions. Bitcoin was trading at $12,615.60, down 7.1 per cent from the day before as of 8.03am GMT, according to Coindesk. The high volatility of cryptocurrencies has attracted both Wall Street and retail investors looking to find more alpha than they could in the highly-regulated and much less volatile stock market.

Whatever the reason, Bitcoin remains relatively strong, suffering less from the major dip than other coins.

  • Carolyn Briggs