Cryptocurrency Market Lost 20% in 24 Hours
During 24 hours cryptocurrency market went down after CoinMarketCap announced about removing a group of Korean exchanges from its price calculations, which caused total market value crashing by $150 billion. Earlier this morning all the top 10 cryptocurrencies showed drops from 1.8% to 22%.
This move caused panic among investors, who were unaware about the reason. Many thought that it was the long predicted bubble burst. The result was that crypto market value dropped from $835 billion to a new low of $668 billion, almost 20% in a day. After the information of real reason of price correction, the market started to recover and currently costs $760 billion.
Lately in December, the South Korean authorities, after US and Japan announced about their plans to set a ban on cryptocurrency trading and introduce a new legislation, which would allow regulators to shut down exchanges if there comes out a need. As Investopedia, the world’s largest financial education website informed the authorities also announced about starting inspection on the six largest exchanges of the country.
Among the cryptocurrencies the worst affected was Ripple, while Ethereum dropped little in price. Ripple had fallen by more than 25% 4 day ago after a cryptocurrency exchange Coinbase squashed romours about integrating it. Meanwhile, digital currency king Bitcoin is up 9% from a low of $14,208.20 yesterday.
The recent panic underscores the inherent instability of the crypto market. Invetors are advised to proceed with caution if they want to make a quick profits.