Big swings continue as bitcoin briefly dips below $10000

Overall, the short-term future of the cryptocurrency is highly correlated to the final decision of South Korea.

According to one study one-third of salaried Koreans had purchased virtual money and 80 percent profited from the investments with the average investor owning more than $5,000 in crypto.

South Korea is also considering restricting cryptocurrency exchanges. Due to the rebounds, the value of all cryptocurrencies tracked by CoinMarketCap rose by $120 billion dollars in the course of roughly nine hours.

Member of the board of Germany's Bundesbank, Joachim Wuermeling suggested that any attempt to regulate cryptocurrencies would require global cooperation.

Bitcoin was worth a few cents at its launch in February 2009 by one or more computer scientists hiding under the pseudonym of Satoshi Nakamoto. They were called bitcoin zombies - too mesmerized by the tickers, charts and promises of digital wealth to take care of real world stuff - like sleep.

South Korea is home to some of the biggest bitcoin exchange platforms and a ban there would disastrous for the Bitcoin infrastructure. Company sources, however, termed the reports as speculative, given the lack of clarity in regulations and the highly volatile nature of cryptocurrency.

And so when trading exchanges are get raided by the tax authorities and your justice minister mentions potential bans on all cryptocurrency trading, it is perhaps little wonder that the industry globally is noticing and that markets are responding.

At the North American Bitcoin Conference in Miami, investors and executives interviewed by Reuters were unfazed by government moves to further regulate cryptocurrencies, which have sent prices into a tailspin.

Bitcoin skidded below $10,000 on Wednesday, halving in value from its peak price, with investors gripped by fears regulators could clamp down on the volatile cryptocurrency that sky-rocketed previous year.

"The January drop is a recurring theme in cryptocurrencies as people celebrating the Chinese New Year, aka Lunar New Year, exchange their crypto for fiat currency", said Alexander Wallin, chief executive of trading social network SprinkleBit in NY.

Bitcoin and ethereum - the first and second largest virtual currencies by market value - appeared to stabilize after Wednesday's lows.

  • Zachary Reyes