Sometimes last year, while the Bitcoin was soaring high, an analyst predicted that when the coin gets to around $50,000, the coin will probably experience a bubble burst, and that could plunge it from that height to around $20,000 and then it will begin to rise again. But since the beginning of this year, the coin and other cryptocurrencies have experienced a downturn and this has crashed the bitcoin from a staggering $20,000 in December into almost $10,000 this January and it seems like the decline has been consistent with other coins too.
Amid all these unusual drops in prices of these currencies, information gathered is that the plunge is because of the fear of countries banning the trading of these coins. We have seen a downturn of about 10% in the prices of these coins in the last 24 hours.
Some of the countries suggesting these bans are South Korea and China. These 2 countries bringing up suggestions on the ban of the currencies or a crack in the trading has gone a long way to affect investors seeing that the move could crash the coin completely.
Over the last 24 hours, we have seen at least the first 20 coins on the coin capitalization market drop with an average of 10% decline. This sudden decline became significant on Tuesday after South Korea’s most senior financial lawmaker stated that the country was looking into completely banning the trading of the currency. He stated that the country will be enforcing this by making sure that every trading that will occur will go by the real names of the persons involved, but that it was still looking into completely banning the currency.
This would bring a complete significant change to the bitcoin trading seeing that South Korea is the largest market for the coin having such a high demand that the coin’s price is even higher in the country.
Suggestions have been made that cryptocurrencies could be a major discussion in the G20 summit in March.